The health insurance market in India is still at a developing stage. The sector is complex; however, it is growing. There are many, who are still not well versed with the importance of medical insurance and avoid investing in the same. Here are a few important reasons why people avoid buying a health plan.
- Lack of awareness
There is little or no awareness of health insurance plans in the country. Life insurance plans are highly publicized but not many are aware of the importance of medical insurance plans. This is the topmost reason why people do not buy a health insurance plan.
- Lack of seriousness towards health
It has been noted that many individuals do not have the right approach to their health. Young individuals tend to think that they are quite fit and nothing will happen to them. This attitude results in less focus on investing in online health insurance.
- Cost
Many people do not consider health insurance as a priority, and they are reluctant to pay a premium for the same.
- Returns
When people invest in mediclaim policy, they look for high returns and tend to think twice because the plans do not have any returns. This makes them consider the investment as an additional expenditure with no return.
- Inadequate knowledge about the claim process
Many customers do not take the trouble to read the offer document and have a clear understanding of what the health insurance plan offers. They do not know about the various inclusions, exclusions, and the claim process. They believe that the claim process is time-consuming and stressful. However, health insurance policies offer a number of benefits like cashless hospitalization services, maternity coverage, and coverage for pre- and post-hospitalization expenses. Most customers do not examine these clauses to make effective use of the policy.
- Dependence on the employer’s plan
Many professionals rely on their employers to provide a medical cover. However, the employer’s insurance plan is not enough because job security is not a given. There could be lean periods of recession, which may result in many layoffs. Hence, it is advisable not to rely on the employer’s plan.
- Underestimating medical inflation
Currently, medical inflation in India is on the rise. This means that the cost of pre-hospitalization and post-hospitalization expenses will increase with time and could prove to be burdensome. Many people do not have the knowledge of the impact of escalating prices of treatment and drugs, and hence, they avoid buying a health insurance plan.
- Additional burden
Many individuals in the country consider health insurance as an additional burden. They think that the premium amount is very high and there is no return on the plan. It is seen as a burden over their annual expenses.
It is important to understand the importance of a health insurance policy and choose the right plan keeping your age and health condition in mind. Health insurance plans are not an expense and can save you a huge amount of money in case of an illness or disease. Health insurance is an important component in your investment portfolio and you must invest in a suitable plan at the earliest.