Common Health Insurance Buying Mistakes

In the list of basic necessities of a human being, a good, rock solid health insurance is a recent yet requisite addition. However, insurance plans and policies which are available almost as widely as groceries are so profuse that they lead insurance buyers into taking very elastic and confused decisions. This eventually leads common simpletons and laymen like you and me to make common mistakes while buying a health insurance. Believe it or not, the unpredictability of our imperfect world often tends to prove costly, especially in cases where sufficient care has not been taken while purchasing insurance. Let's take a look...

List of Common Health Insurance Buying Mistakes
The following is a quick gaze at some of the common health insurance buying mistakes. Now, note that the actual mistake is followed by some solution. Plus, an explanation as to how the insurance industry works and some of its common practices and customs have also been elaborated on.

1. Premium and Cost Over Coverage
A common mistake that almost all of us fall prey to is considering the total price of the insurance, rather than the total health insurance coverage. Not to worry, it's simply the human nature and psychology at its worse. What happens is that we go to shop for a health insurance, and we end up with a broker who offers us a policy at great premium and a nice payment schedule. It completely fits into our income structure and all. The mistake here is that we are so attracted by the lucrative premium scheme, that we fail to consider the flaws in the coverage of the policy, and we end up making a significantly bad choice.

• The Truth: The rule of thumb is that the better the coverage, the higher is the premium. Now, when you take up a policy which has a low premium, it is cheap, in almost all aspects, by the virtue of price as well as coverage. Ultimately, the compensation that you are going to get is well, negligible.
• The Solution: In order to avoid such a mistake, one can initiate a simple solution. When you go insurance shopping, you can simply take a look at the 'terms and conditions' of the policy. These will give you 3 important tell-tale facts, namely, the body parts which are covered by the policy, the ailments, diseases, the incidences and situations in the light of which the medical procedure was initiated, and lastly, the medical conditions, ailments, and diseases which are excluded all together from the coverage. In case of a 'cheap' policy, you will find that the last list is pretty long