As healthcare awareness continues to rise across India, more people are recognising the importance of health insurance. Yet, several myths and misconceptions still stop many from purchasing a suitable plan. From believing it’s “only for the wealthy” to thinking “claims never get settled,” these myths can prevent families from securing the financial protection they deserve
In this guide, we’ll clear the air by debunking some of the most common health insurance myths and help you make informed, confident choices about your coverage.
8 Common Myths Regarding Health Insurance and the Truth Behind Them
At Generali Central, we believe in educating our customers about the realities of health insurance. Here are some common myths about health insurance, along with the reality checks for each.
1. Myth: Young Individuals Don't Need Health Insurance
Often, young individuals believe health insurance isn’t necessary because they’re healthy and active. It is a common perception that health insurance is only for the elderly and those with health issues.
Reality Check: Medical emergencies or accidents can occur at any age. Accidents, sudden infections like COVID-19, and other events can affect everyone. Hospitalisation due to accidents can also get quite expensive and affect long-term savings. So, having health insurance is equally important for young adults. Additionally, buying health insurance at a young age offers the benefits of investing in health insurance early in life - lower premiums and earlier completion of waiting periods
2. Myth: Claims Can Go Unsettled
The stories of unsettled claims circulate quickly, creating a sense of fear that insurance companies look for excuses to deny them. Some may also believe it's a long, time-consuming process.
Reality Check: The IRDAI (Insurance Regulatory and Development Authority of India) closely monitors insurance companies and claim settlements. Mostly, health insurance claim rejections occur due to non-disclosure by policyholders or false claims.
3. Myth: Critical Illnesses are Not Covered
Critical illnesses are often associated with extensive treatment and hospitalisation. Hence, people may believe that these are too expensive to be covered under a health insurance and that insurers may not cover terminal illnesses like cancer, tumour, etc.
Reality Check: Many health insurance companies offer critical illness riders or standalone policies that cover conditions such as cancer and other terminal illnesses. In a fixed-benefit plan, upon diagnosis of a listed disease, the insurer pays a lump-sum benefit so the patient can focus on recovery without worrying about finances.
4. Myth: Group Health Insurance is Enough
Corporate group health insurance feels convenient, with hardly any waiting, paperwork, cost, or effort. However, it may not provide adequate or long-term protection. Coverage usually ends with your employment, and as the coverage is typically modest, a single hospitalisation can exceed the limit.
Reality Check: A group health insurance coverage may not always be sufficient. The coverage is temporary and limited, and usually ends upon your employment. Even one major hospitalisation may exceed the limit or even cost you out of pocket. So, having a separate insurance policy may be a smart choice. It provides you with personalised coverage regardless of your employment status.
5. Myth: Health Insurance is Expensive
One of the most common myths is that health insurance premiums are very expensive. It's perceived that health insurance is for the rich and well-to-do.
Reality Check: Stop seeing the premiums as financial stress; rather, they are a safety net. The premiums you pay in a year would be far less in case you/ family members need hospitalisation. Also, present-day health insurance premiums can be tailor-made and thus more affordable than you think.
Further, tax deductions under Section 80D of the Income Tax Act of 1961 lower the overall financial burden on the policyholder. At the time of purchasing/renewing health insurance, you may also get discounts and offers on premiums.
6. Myth: Smokers and Individuals Drinking Alcohol Aren't Covered
You may have heard people say that people who smoke or drink may not get health insurance coverage. Since smoking and drinking affect health directly, it may be strictly against insurance norms. So, many people may not even apply for health insurance, fearing rejection.
Reality Check: Smokers and those who drink are also eligible for health insurance. The insurance company may require medical reports of the applicants to assess health risks. The premium charged may be slightly higher for smokers than for non-smokers. All you have to be careful about is being transparent to avoid future complications or claim rejections.
7. Myth: Only Allopathy Treatments are Covered
Traditionally, health insurance focused more on hospitalisation in allopathic hospitals. So, many people still believe that health insurance only covers allopathic treatments. Alternative treatments were once excluded, leading to limited benefits.
Reality Check: As per IRDAI guidelines, modern health insurance policies offer coverage for AYUSH treatments. AYUSH stands for Ayurveda, Yoga, Unani, Siddha, and Homoeopathy treatments. Along with traditional medicine, these alternative treatments are also covered under health insurance plans.
8. Myth: Pre-existing Diseases are Not Covered
Some people may have an existing illness when purchasing health insurance, such as asthma, diabetes, or thyroid issues. They may fear that revealing the same may lead to a higher premium or rejection of the application.
Reality Check: It is important to understand that pre-existing illnesses are not really excluded under a policy. Rather, these are covered after a specific waiting period (typically up to 3 break-free years after purchasing the policy). Once the waiting period ends, you can raise claims for PED as well. Honest disclosure of health concerns maintains transparency and maximum coverage.
As policyholders, it is crucial to share accurate details and be transparent about health status. Also, you must check a company's claim settlement ratio before purchasing a policy. At Generali Central, we assure you that we will settle claims as soon as possible.
To Conclude
Health insurance is one of the medical securities everyone must have. It not only saves your hard-earned money but also lets you avail the best healthcare services. With each passing year, health insurance companies are focusing on offering more comprehensive coverage at the most affordable premiums. So, do not get swayed by the myths around you; understand health insurance and know the facts so you can make the right choice.
