Know What to do When you Don’t Declare Your Health Condition While Buying Insurance?

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Today, health Insurance planning is not an option; it is a must. It is even more essential to purchase comprehensive healthcare insurance plans. However, many people make the common mistake of not disclosing pre-existing conditions or diseases while buying an insurance policy. The reason behind it is mostly that they fear it will lead to policy rejections or a higher premium.

 

Little do they know they can get the approval by disclosing their health status and even selecting an ideal coverage. This blog is a complete guide to why one should not fear disclosing their health status and, if they do, what remedies they can do.

 

Why is it Important to Disclose Your Illness Before Buying Healthcare Insurance?

 

Here are some primary reasons why being forthright about an illness is essential when buying the best health insurance plans:

 

1. Avoid Claim Rejection

Hiding pre-existing conditions may result in the claim being denied if discovered later by the insurer. It can leave one in a vulnerable financial situation when they most need the coverage.

 

2. Policy Nullification

Insurance providers underwrite policies based on the health declaration of policyholders. If undisclosed illnesses are uncovered post-purchase, the insurer can consider the policy null and void.

 

3. Waiting Period

While disclosing pre-existing conditions may lead to a waiting period before coverage, it is a temporary inconvenience. Waiting is preferable to having a claim rejected or the policy annulled. Being transparent from the start ensures a smoother claim settlement process in the long run.

 

4. Maintain Trust

Providing accurate information is fundamental to the insurance contract. The insurer heavily relies on the proposal form the policyholder provides and accepts it in good faith to assess risk and determine premiums. False information breaches trust and can lead to legal consequences.

 

Consequence of Not Declaring Health Information at the Time of Healthcare Insurance

Suppose a policyholder files a claim, and the healthcare insurance provider discovers the claim is related to an undisclosed critical illness insurance. In that case, the insurer can reject the claim or terminate the health policy. This information can be uncovered while verifying the pre-existing disease healthcare insurance documents.

Secondly, even if the claim filed is unrelated to any undisclosed health conditions, the insurer retains the authority to cancel the policy.

Lastly, when hidden information pertains to pre-existing ailments or severe illnesses requiring ongoing treatment, the policyholder may not receive coverage under pre-existing disease healthcare insurance. Given the escalating costs of healthcare, having a claim denied or rejected can significantly impact financial well-being.

Ways to Resolve the Issue of Non-Disclosure in the Case of Healthcare Insurance?

Here are some ways one can resolve the issue of non-disclosure.

 

1. Free Look Period

If an error occurs after purchasing the best health insurance policy, there is a grace period known as the free-look period. It allows individuals to cancel, modify, or rectify inaccuracies within 15 days of policy purchase. If any health-related information was not disclosed at the time of purchase, it can be corrected during this period. The insurance company will then adjust the policy according to established guidelines.

 

2. Policy Renewal Period

If the free-look period is over, individuals can still disclose their health conditions during the policy renewal. However, it depends on whether the insurance provider accepts the new disclosure. They may continue the coverage with possible adjustments like a higher premium, medical condition exclusion, or even policy cancellation.

3. New Insurance Policy

Individuals have two options: buy a new best health insurance plan or switch to a different insurance provider. They can publicly declare their medical conditions while obtaining a new plan. It allows them to acquire coverage for pre-existing health conditions.

Conclusion

When it comes to purchasing healthcare insurance, honesty should always prevail. Disclosing the health conditions is an ethical obligation and a practical choice to ensure coverage and avoid potential claim rejections. Withholding such crucial information can lead to policy nullification and severe financial repercussions.

Although there are ways to rectify non-disclosure errors, it is ideal not to hide pre-existing and known health conditions. In essence, prioritises transparency when dealing with healthcare insurance matters. Niva Bupa Health Insurance provides various reliable plans and expert guidance to navigate the complexities of healthcare insurance to cater to diverse healthcare needs.

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