Richa, a 35-year-old professional, purchased health insurance with a low premium, intentionally failing to disclose her smoking habits and pre-existing heart condition to keep costs down. However, when she required urgent heart surgery a few months later, her insurance claim for the expenses was denied after the company discovered her undisclosed medical conditions during their investigation. 

Despite having an active health insurance policy, Richa's non-disclosure resulted in her bearing the high out-of-pocket costs for the surgery and hospitalisation, highlighting the critical importance of complete transparency when applying for such policies.

Because of the intricate industry-specific language and the wide variety of coverage options, many people make poor choices when purchasing health insurance. It's easy to get lost in the jargon of health insurance and end up with a plan that doesn't work for your budget or healthcare needs because of confusing terms like deductibles, co-pays, networks, and exclusions. The selection process is further complicated by the wide variety of coverage types, premium amounts, and benefits available, any one of which could leave the policyholder underinsured, overpaying, or on the hook for unforeseen costs. Unforeseen problems may also arise from a policyholder's failure to fully comprehend the policy's terms, exclusions, and restrictions.

However, the exorbitant expenditures of medical care highlight the critical importance of health insurance. Consequently, it is crucial to make well-informed judgements when buying health insurance in order to secure the best possible coverage.