You get a call from an Insurance Company telling you of a new scheme where you will be provided free Medical Insurance if you buy a Life Insurance Policy from them. What’s more you only pay the premium of your life insurance policy and after 5-10 years you get your money back with a guaranteed return of 12%.

Sounds like a great offer!!

When we buy health insurance we just pay the premium and we do not get anything back if we do not fall sick. Now this is a bad deal!! My money is going to the insurance company and they are getting rich. But this is your part of the story.

Health Insurance companies do not make profits from the premium you paid to them. In fact they are custodians of the pool of the money which is made by the premium that all the policyholders pay every year. They pay genuine claims out of this pool and hence they ask many questions and investigates before they pay any claim. So let’s not blame the insurance company when they ask questions. They are only trying to pay the money to genuine claimants.

Coming back to the recent insurance frauds and misselling these days, the fraudster is not calling on behalf on any insurance company. They are either call centres employees, employees at the broker firm or agents who are looking at quick money by selling their policies. You do not get health insurance free with any policy. So please do not fall trap of such calls made to you.

In case you have taken such policy and are waiting for the health insurance policy to arrive, please cancel the same in free look period and get your money back! You need to immediately write to the customer service of the insurance company from where the policy is issued to you.

Health Insurance is a very important financial tool and you must buy individual plan from the health insurance company after understanding the product based on your requirements. Do not hurry and do not change your insurer. Buy one policy and try to strict to one company to get maximum benefits and good claim experience.