4 Important Tips to reduce your Health Insurance Premium

The rising health costs and immediate access to online information more and more people have started to understand the importance of health insurance and why it is essential to have it in your insurance portfolio. 

Approximately ₹26,475 is the average inpatient hospitalisation medical cost in urban India and ₹16,676 in rural areas. Such rising costs are not affordable for everyone, and so, as per the National Institute of Public Finance and Economists, the high medical costs in India push down almost 8-9% of Indians every year below the poverty line. In such a situation, a health insurance policy can shield you from a number of medical expenses that may come without a notice.

Now that the importance of health insurance has been established let’s come to the core aspect of this piece – tips to reduce your health insurance premium. Before we list it down, please bear in mind that these tips are to help you choose the best health insurance plan and not the cheapest one available. Because an optimal premium doesn’t mean the lowest premium. On the contrary, it means that the premium should be commensurate with the coverage benefits.

Buy a Health Insurance Policy at an Early Age

Choosing a health insurance plan at a young age is certain to cost you less. Health insurance companies consider young people are less likely to fall sick and get admitted, and so, they are charged lesser premiums on the health insurance policies. Also, in comparison to an older individual with a pre-existing health condition, your health insurance premium will be lower. So, do not wait for the right age and invest in your preferred health plan at an early age.

Buy Online

Earlier, when the online market was not so upgraded, the offline method was the only way to purchase a health plan. It includes the cost of agents who helped in purchasing the right health insurance plan. However, now, if you purchase a plan online, you need not look for an insurance agent. You can look out for various plans and compare them online on your own. This eventually helps the insurance companies to cut down on the agent’s commission and offer multiple discounts on their products.  By availing of discounts and offers, you can further reduce the cost of your health insurance plan.

Opt for a Family Floater Plan

A family floater plan is a health insurance policy where all the members of the family are covered under a single plan. The premium charged is also low as compared to individual health insurance plans. The premium is charged by taking into consideration the oldest member of the family.

Resist the Temptation to Buy Unnecessary Covers

It is only normal that you wish to opt for the best for your family. But when you start surfing for the best health insurance plan, do not just go along with the one offering extensive coverage. Undoubtedly, having a comprehensive health plan is a good idea, but you may pause and think about extending your plan.

By investing in certain add-ons, you can increase the plan's coverage, but at the same time, it also increases the burden of premium. So, do not get tempted by the coverage and ask yourself if you really need that extra coverage. Investing in unnecessary covers will only exhaust your funds without actual use.

You can Go for Lower Coverage, to Start with

As stated above, this is a step in gradual progression. You can buy a health insurance policy with relatively lower coverage. The premium charged will also be less on low-coverage health insurance plans. You can then enhance the sum insured on your medical insurance renewal by paying an additional premium when your financial status improves. However, before you enhance or switch your plan, make sure you know all about the new plan and make use of your cumulative bonus, and the on-going discounts, if any, to pay a lower premium.

>> Also Check: Mediclaim Policy Premium Calculator

Opt for Deductibles

Many health insurance companies allow customers to go for a deductible. A deductible is an amount that has to be paid by the policyholder when a health insurance claim is raised. You can make the most of this opportunity to reduce the premium of health insurance plans. By choosing a higher deductible, you can lower the premium and vice-versa. However, make sure you choose a practical amount to avoid out-of-pocket expenses at the time of a claim.

Select Long Term Medical Insurance

The long-term health insurance premium comes out to be more affordable than the premium of basic medical insurance plans with an annual term. Health insurance premiums decrease considerably if you choose to pay the premiums for two or more years at once. Nowadays, you have the option of long-term medical insurance plans. So, choose the best long-term/ multi-year health insurance and enjoy an affordable premium.

Follow a Healthy Lifestyle

Stay healthy to avoid medical expenses. When you eat a healthy diet, go for regular exercise, and keep your mind healthy, you are sure to lead a healthy life as well. A healthy person is very likely to enjoy a lower health insurance premium for better coverage. Also, raising no claims will lead to rewards and bonuses that can help you cut down on the premium charges. 

Avoid Making Small Claims

You can try to avoid small claims to save on premiums. This is because when you raise no claim in a policy year, you are rewarded with a cumulative bonus as a token of appreciation from the health insurance company. Using a cumulative bonus at the time of policy renewal can help you get a 10%-50% increase in the sum insured without any increase in the policy premium.

Make the Most of Tax Benefits

Do not forget to avail tax benefits when you are paying health insurance premiums. Under Section 80D of the Income Tax Act, 1961, individuals below 60 years of age can enjoy a tax deduction of up to ₹25,000, and senior citizens get tax deductions of up to ₹1,00,000.

Opt for Top-up and Super Top-up Plans

Both top-up and super top-up plans are the additional coverage you purchase above the basic sum insured. It helps you cover the bills of one extra hospitalisation above the sum insured limit. On the other hand, if you wish to purchase more coverage, you may go for super top-up plans. It offers multiple hospitalisation cover above the sum insured limit.

Port to Care Health Insurance

Your current health insurance plan may appear to be sufficient for today's medical needs. However, it may not be sufficient in the future. So, in case you want to switch the health plan, you may look forward to porting the health insurance plan. Did you know the cumulative bonus remains intact even if you port your health plan to a new health insurance provider?

While Concluding!

These are simple steps that will give you the right direction to save on your pocket. You can do your research at the time of buying by comparing different plans in the market on the basis of their offerings. Having said that Care Health Insurance plans are designed in a manner to cater to the different needs of the individuals. Till date the company possess a hooping number of 38 lakh settled claims and more than 22,900 healthcare providers associated with, which complemented by a diverse range of health insurance plans you can consider for yourself.

Disclaimer: Please read the brochure and prospectus to know more about our health insurance plan cover as conditions may vary without any prior notice.