Policy coverage, deductibles and co-pay: The medical policy should cover all expenses that go with medical emergencies.
One should not opt for deductibles just because these deductibles reduce the premium amount because such deductibles have to be borne by the policyholder and these can burn a hole in the pocket.
So one needs to bear in mind his/her capacity to bear the deductibles before opting for them. Some insurance companies have a co-pay clause in their policies where the policyholder is required to pay a fixed sum or a percentage of the bill, while the insurer will pay the rest.
So, higher the co-pay ratio in favour of the insurer, lower the premium. But one should not choose to pay a higher share just to avoid paying higher premium - the ratio needs to be in line with one’s financial ability.
Buying for tax benefits: Although health insurance policies do provide tax benefits to the policyholder, it would be unwise to choose a policy only with the intention ofsaving tax. The sole purpose of buying medical insurance is to get adequate medical coverage and meet your health needs, while tax saving is a secondary benefit.
Concealing pre-existing illness: This is a grave error that can cost the policyholder insurance coverage. It is absolutely necessary to disclose any pre-existing illness at the time of buying medical insurance and not provide any false information or conceal any information in order to avoid paying high premiums.
If the insurance company discovers that the illness was pre-existing, it may reject the claim or even terminate the insurance cover. So, always make it a point to disclose any pre-existing illness when buying a health insurance policy.