How to Avoid the Risk of Being Underinsured by Your Health Cover?

 How to Avoid the Risk of Being Underinsured by Your Health Cover?

You must have heard countless times that you need to have health insurance. However, do you know how health insurance financially covers you against illnesses? The idea of health insurance is that if you fall sick and need to be hospitalized, the medical bills of your treatment will be covered by the insurance provider. However, health insurance coverage is not unlimited. For the premium you pay, you buy a fixed amount of coverage. Hence, what happens if your medical bills exceed your health insurance coverage? Simple: You have to cover the rest by yourself. Therefore, having enough coverage in your health insurance plans is essential.

While the number of people buying insurance is rising, underinsurance is a problem growing at a similar rate in the country. Inaccurate information or a lack of knowledge can make you think you have insurance and are protected against medical emergencies. However, when they claim and realize their medical expenses are much higher, they face a challenging financial situation.

Health Cover

How can you be underinsured?

Being underinsured is not having enough coverage for yourself or your family. However, there are different ways of being underinsured. It would help if you were more varied in your medical needs and buying coverage. Here are two ways you can be underinsured:

  • Low sum insured

Sum insured is a significant factor when buying health insurance. It is essentially the maximum amount the insurance company would pay for your medical treatments. It is connected to the premium you must pay for the policy. Hence, many people choose to lower their premium by going for a lower sum insured. They think that they have enough coverage for a lower price. However, if the medical emergency turns out to be lengthy at the time of claim, you would have to cover the excess amount of the medical bill by yourself.

  • Low scope of coverage

In this case, the fault is not with the coverage amount but the range’s specific inclusions and exclusions. It is the question of whether your insurance provider would cover certain illnesses, procedures, or facilities when you are hospitalized. This way of being underinsured has less to do with you and more with the policy your insurance provider offers. If you select a policy with this insurance provider, you would have to compromise on not having this coverage. If you are ever caught in this particular set of situations, you must cover its expense on your own. This can include coverage for critical illnesses like cancer, capping on hospital room rent, coverage for dental procedures, etc. * Standard T&C Apply.

How can you avoid being underinsured?

The best way to avoid being stuck in a weird situation is to think ahead before buying the policy. This means evaluating every way that you could end up being underinsured. Then, it would help if you took viable measures to get enough coverage without hurting your budget. Here are a few tips you can follow:

  • Assess your coverage needs when purchasing the policy. Take factors like inflation and possible unforeseen medical expenses into account.
  • Select an adequate amount as the sum insured. Ideally, it would be best to go for an insured sum higher than you think you might need. But, take your affordability into account as well. Read thoroughly through the inclusions and exclusions of the policy. Ensure that all types of coverage you want in the tour policy are included.
  • You can use top-up health insurance plans to enhance your existing coverage.
  • In some extreme cases, the health insurance portability facility allows you to change your insurance company to a better provider.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Dennis Bailey

Professional beer geek. Alcohol ninja. Social media scholar. Award-winning twitter fanatic. Writer. Basketball fan, mother of 2, audiophile, Saul Bass fan and communicator, collector, connector, creator. Producing at the sweet spot between simplicity and purpose to create strong, lasting and remarkable design. I'm a designer and this is my work.