Why Don’t People Buy Health Insurance?

By Author: Aman Bhatia
Total Articles: 19
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Health insurance companies are making so much of efforts to make medical care accessible for people. They are continuously coming up with new and innovative products that people could find useful. It is to improve the accessibly of healthcare among the masses. However, regardless of all these efforts, there are a large number of people who do not buy these products. What could be the cause behind it? Are these people not aware about health insurance benefits or lack the trust among the providers?
The research shows that there are several causes for people not buying these products. Firstly, the lack of knowledge is the main area to be focused at. There are many people who are not aware of these plans or believe them to be expensive enough to afford. These people need to be taught that they could get coverage for lacs of rupees by paying a little premium amount. There are plans available for people of all income groups. They need to come forth and actively participate in the buying process.

Secondly, lack of understanding about the working of these product. There are people who are not aware of the working of these ...
... products, as they could not understand the insurance terms. This problem arises when people do not go through the terms and conditions before buying a health insurance plan. The people belonging to this pool generally rely on agents or brokers to make a choice for them and just sign the policy papers’ without pondering over the terms and conditions. Many a time, an agent in their excitement to sell the plan, do not disclose the exclusions of the plan and people also do not take pains in knowing them. This engenders confusions and ultimately, led to health insurance claim rejection.

Thirdly, people’s positive attitude that nothing will happen to them, hence, they need not buy these products keeps them away from the health coverage. People need to understand the uncertainty of life. A medical emergency can arise ant any point of time and can bring in issues for a person. The sedentary lifestyle led by people has brought in various health issues. On other hand, the increasing number of medical care expenses is making it difficult for people to afford these treatments.
People should understand that health issues can arise and can bring in financial problems for the family. it is better to be protected in advance such that there are no financial constraints at the time of seeking the medical treatment.

Fourthly, people believe that these products should be purchased at later stages of life, as human being’s body becomes more prone to health issues. These people need to be educated about the benefits of buying these products at early age. It would keep them protected throughout the life and offer them the needed coverage, when required. Moreover, people buying it at early age can take full fledged benefits of these plans, as waiting period elapses in early days, when a human body is healthy and the insured do not need the coverage.

Fifthly, there are many insurance terms that people are not aware of. There is a need for them to clarify the meaning of these terms, before making the choice. A person can take more benefits on learning about the product’s terms. Hence, one should go through the policy wording and then, should learn about each and every clause. It would help insured individuals to seek better protection.

Insurance companies should also take the needed initiatives in spreading awareness about health insurance benefits and working of the plans and should encourage people to buy the same. The products designers should design innovative products such that they are found useful by the people. Apollo Munich Health Insurance is one of the companies that are working in this direction to help the Indian people seek better medical care. They are formulating products, after identifying health needs of people and spreading awareness such that people could be known to these products and their use. The company is striving to demystify health insurance in India.