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7 Mistakes to Avoid When Buying Health Insurance

28 May 2026 6 min read
7 Mistakes to Avoid When Buying Health Insurance

From under-insuring to hiding medical history, these common mistakes can get your claim rejected. Here's how to avoid them.

A health policy is only as good as the moment you claim on it. These seven mistakes are the most common reasons people end up underinsured — or worse, with a rejected claim.

1. Buying too little cover

A ₹3–5 lakh policy sounds fine until a single hospitalisation in a metro city crosses it. Aim for ₹10 lakh+ and use a super top-up to reach ₹25 lakh–₹1 crore affordably.

2. Hiding your medical history

Not declaring a pre-existing condition to get a lower premium is the fastest route to a rejected claim. Always disclose everything — insurers can and do check.

3. Ignoring the waiting period

Pre-existing diseases are typically covered only after 2–3 years. If you have a condition, choose a plan with the shortest waiting period rather than the cheapest premium.

4. Overlooking room-rent limits

If your policy caps room rent, a pricier room can proportionally reduce your entire claim. Prefer plans with no room-rent capping.

5. Only comparing premiums

The cheapest plan is rarely the best. Weigh the claim-settlement ratio, network hospitals, sub-limits and restoration benefits — not just price.

6. Forgetting to add parents correctly

Adding elderly parents to your floater can spike the premium for everyone. A dedicated senior-citizen plan is often cheaper and better for them.

7. Not reviewing cover yearly

Your needs change — marriage, a child, a bigger income. Revisit your cover at each renewal and top it up as life grows.

Unsure if your current cover is enough? A free advisory call can spot gaps in minutes — no obligation to switch.

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