10 common mistakes to avoid while buying health insurance
Understanding health insurance can be tricky with all the options and terms. It’s essential to get it right to ensure both your health and financial security. With so many options and details, it’s easy to make mistakes that could affect you later.
In this article, we’ll explore the ten common mistakes people make when buying health insurance. We’ll help you avoid these errors and make finding the right health insurance plan easier.
1. Insufficient research
When buying health insurance, it’s crucial to do thorough research to avoid any regrets. Simply searching for “Thai health insurance online won’t give you the full picture. Instead, you need to carefully evaluate several key aspects of potential insurance plans.
- Coverage Details: Check what each plan includes, such as hospitalization, outpatient care, and additional benefits like preventive services.
- Costs: Compare premiums, deductibles, co-payments, and out-of-pocket maximums to understand the total cost.
- Customer Reviews: See what others say about their experience, especially with claims and customer service.
- Claim Process: Investigate how easy it is to file claims. A plan might look good, but a complicated claims process can be frustrating.
Proper research helps you choose a plan that fits your needs and avoids unexpected costs. It’s key to finding the right coverage and ensuring your financial peace of mind.
2. Choosing insufficient policy coverage
A common mistake when buying health insurance is selecting a policy with insufficient coverage, which can lead to significant financial strain during a health crisis. Proper coverage should include essential services like hospitalization, outpatient care, maternity services, and critical illness protection.
In Thailand, especially in cities like Bangkok, medical costs for services such as specialist consultations and hospital stays can be high. Don’t forget about inflation, which can affect future medical costs.
To avoid the issues of inadequate coverage, choose a plan that provides good protection while keeping premiums affordable. By selecting a policy that fits your needs and budget, you’ll ensure solid coverage and avoid unexpected costs. For example, our official partner, Cigna, has good coverage for your health, making sure that you don’t have to worry about a thing!
3. Concealing medical history
When buying health insurance, being honest about your medical history is crucial. Whether you’re in Thailand or elsewhere, insurance companies depend on the information you provide to set your coverage and premiums. Concealing details like pre-existing conditions might risk your coverage and result in claim denials.
Being transparent about your medical history helps insurers provide the right coverage and reduces the risk of claim issues. Insurers use the information you provide to determine your plan and premiums, and they have methods to verify your health details.
4. Overreliance on employer-provided insurance
Relying solely on employer-provided health insurance can be risky. While these plans are convenient and often affordable, they might not fully cover your specific health needs or major medical expenses. Employer insurance is designed for a broad range of employees, which means it might not address your unique health concerns or lifestyle. Additionally, if you switch jobs, you could lose your coverage. In Thailand, where medical costs can be high, this could leave you with significant out-of-pocket expenses.
To ensure you have comprehensive coverage, it’s wise to consider a private insurance plan in addition to your employer’s plan. A private plan can be tailored to your specific health needs and provide extra financial protection, giving you greater security and peace of mind. For expats in Thailand, securing the right health insurance is crucial—and there’s no better time than now.
5. Ignoring the fine print of the policy
Ignoring the fine print in your health insurance policy can lead to surprises when you need to file a claim. While attractive features like low premiums and broad coverage are tempting, it’s important to look closely at the details.
The fine print includes crucial information such as policy limits, waiting periods, copayments, and exclusions. Understanding these details helps you avoid unexpected costs and ensures you’re fully aware of your coverage. To prevent any surprises, carefully review the fine print or consult with insurance experts. By thoroughly understanding the fine print, you can protect both your health and your finances.
6. Misunderstanding the co-pay clause
Misunderstanding the co-pay clause is a common issue when buying health insurance in Thailand. The co-pay is a set percentage of your medical bill that you must pay out of pocket at the time of treatment. For example, if your policy has a 10% co-pay and your bill is 100,000 Baht, you’ll pay 10,000 Baht, and your insurance will cover the remaining 90,000 Baht. The co-pay percentage can vary between policies, so a higher percentage means you’ll pay more of the bill yourself before insurance kicks in. Conversely, a lower co-pay might mean higher premiums.
To avoid surprises, carefully review the co-pay details in your policy. Even small differences in the co-pay percentage can have a big impact on your expenses, especially with rising medical costs. If you’re unsure about the co-pay clause, consult with an insurance advisor to help you understand it better and choose the best policy for your needs. Understanding the co-pay clause helps you manage your costs and make the most of your health insurance coverage.
7. Buying health insurance just for tax benefit
Focusing on tax benefits when choosing health insurance can lead to inadequate coverage. While tax savings are a nice bonus, they shouldn’t be your main reason for selecting a policy.A plan designed primarily for tax benefits might have a low premium but could lack essential medical coverage or have high deductibles and co-pays. This means you could end up paying more out of pocket during medical emergencies than you saved on taxes.
It’s also important to note that tax benefits have limits. Once you reach the maximum deductible amount, any extra premiums won’t provide additional tax savings.
Instead of prioritizing tax benefits, focus on finding a health insurance plan that offers comprehensive coverage and fits your financial needs. This approach ensures you have the protection you need for your health and avoids unexpected costs.
8. Delaying investment in health insurance until old age
Waiting until you’re older to buy health insurance can lead to higher costs and less coverage. When you purchase insurance at a younger age, you lock in lower premiums because insurance rates are based on your age and health at the time of application.
As you age, premiums generally go up due to increased health risks. By getting insurance now, you save on premiums and secure ongoing coverage. Additionally, many policies have waiting periods for pre-existing conditions that can last two to four years. If you are late in buying insurance, you might end up facing these waiting periods just when you need coverage the most.
Plus, as you get older, there’s a higher chance your application might be rejected due to existing health problems. Getting insurance while you’re younger and healthier helps you sidestep these issues and ensures you’re covered when you need it.
9. Not considering sub-limits
Ignoring sub-limits in your health insurance policy can lead to unexpected expenses and inadequate coverage. Sub-limits set limits on specific parts of your coverage, like how much you can claim for room rent, ambulance fees, or treatments for certain conditions.
For example, if your policy limits room rent to 1% of your coverage amount and you have 500,000 baht coverage, you can claim up to 5,000 baht per day for room rent. If your hospital room costs more, you’ll need to pay the difference yourself.
Policies also often have limits on specific treatments, which can result in higher out-of-pocket costs if you need expensive care. To avoid surprises, carefully check these limits when choosing your policy.
Higher limits usually mean better coverage. Discuss these details with an insurance broker or agent to find a policy that meets your needs. Understanding these limits helps you avoid extra costs and ensures you get the coverage you need.
10. Failure to understand add-ons
Not paying attention to add-ons or riders is a common mistake when choosing health insurance in Thailand. Add-ons are extra benefits that enhance your basic coverage, giving you more protection against specific health risks. For example, a critical illness rider provides a lump sum if you’re diagnosed with major illnesses like cancer, heart attack, or stroke. Skipping these add-ons might mean missing out on valuable coverage that could be important for you.
When considering add-ons, think about your personal needs. If you have a family history of serious health issues, a critical illness rider might be worth it. If you travel a lot, a global coverage rider can help with medical expenses abroad.
Keep in mind that add-ons cost extra, so make sure they fit your budget. Also, insurers often have limits on how many add-ons you can add, so talking to an insurance broker can help you understand your options. By carefully considering and choosing the right add-ons, you can get better coverage and be more prepared for unexpected health issues.
Discover the Benefits of Cigna Insurance Plans
Cigna offers a comprehensive health insurance plan that covers both inpatient and outpatient services, with access to over 2.2 million healthcare providers worldwide. Their flexible plans let you customise your coverage with various deductible options and include preventive care benefits.
Discover the full list of hospitals in Thailand covered by Cigna health insurance in our in-depth guide on Cigna’s coverage network.
Enjoy 24/7 multilingual customer support and the convenience of enrolling at any age—there’s no maximum age limit! Here’s what Cigna provides:
- Inpatient and Daypatient Coverage: Covers hospital stays, surgeries, diagnostic tests, intensive care, and cancer treatment.
- Optional Outpatient Coverage: Includes visits to doctors and specialists, prescribed medications, and diagnostic tests.
- Direct Billing: With Cigna’s wide network of hospitals in Thailand, you can receive treatment without paying upfront. Use their provider search tool to find a doctor or hospital near you.
