Health insurance has become an essential investment today, given the soaring costs of medical treatment. Yet, a large segment of the Indian population still prefers to do without a health insurance plan, thinking it would burden their pockets unnecessarily.
However, the grim reality is that medical inflation in India has reached the highest in Asia and has risen as high as 14%. And, unfortunately, only a few have access to healthcare facilities due to the rising healthcare costs. While buying health insurance can lower the burden of medical emergencies, the cost of health insurance itself can weigh down your wallet.
The good news is that several techniques can not only help you save money on health insurance premiums but also get huge tax deductions while buying family mediclaim insurance. These cost-effective measures can save you money while providing your family with adequate mediclaim coverage. In this article, you will learn thirteen intelligent ways to save huge funds with a family health insurance plan.
How do I save money on Health Insurance?
Here are the topmost factors that can influence your health insurance premiums and help you save money:
Buying Health Insurance at a Young Age
Undoubtedly, buying a health insurance plan at a young age can save you enough money on premium rates. Besides, some plans offer you a special discount on the premium if you buy the policy at a young age.
For instance, the Care Plus Youth Health Insurance plan offers an “Early Bird Discount." If an individual buys this policy until 35 years of age and regularly renews the policy, on completion of his or her 40th year, he or she will get a 10% discount on the subsequent renewal premium. However, this discount is subject to the terms and conditions mentioned in the policy brochure.
Opting for a Family Floater Plan
If you plan to secure your entire family, you should consider buying a family floater health insurance plan. Under a floater cover, all family members share the coverage equally, rather than paying a single premium amount. Comparatively, the premium cost of a family floater plan is less than that of individual health plans for every family member separately.
However, if your family includes senior citizens, including them under your family floater is not a wise choice. You should buy a separate plan for elderly family members to ensure savings under a family floater plan while promising uncompromised security to your parents.
Claiming an 80D Deduction on Income Tax
The most evident benefit of buying health insurance is that it is a tax-saving investment. You can save up to INR 25,000 on individual health insurance premium payments under Section 80D of the Income Tax Act. A family floater cover can fetch you tax deductions of up to INR 50,000.
Also, senior citizens covered under a health policy can claim tax deductions of up to Rs 50,000 on the premium paid. If you are paying the health insurance premium on behalf of your senior citizen parents, tax deductions can be as high as INR 75,000. You must not forget to claim this deduction while filing your income tax returns online.
Remember, you can avail of tax deductions on health insurance plans only under the old tax regime.
Choosing Policy Terms Wisely
While buying a health insurance plan, go for a longer policy term. Buying a long-term policy can reduce your premium. Many competitive insurance providers offer special discounts if you opt for multi-year coverage of two years or more.
At Care Health Insurance, we offer an additional discount of 10% on premiums if you buy a three-year health plan. However, this discount is applicable only to select policies, including Care and Care Advantage Plans, and is subject to the terms and conditions mentioned in the policy documents.
Earning a Bonus for Claim-Free Years
Though a policy feature, the no-claim bonus benefit can prove a money-saver, given the rising medical inflation. Earning a bonus on the health insurance sum insured can save you from out-of-budget hospitalisation expenses. Especially during prolonged illnesses like cancer or paralysis, an increased sum insured can help you lower the financial burden in the long run. So, the higher the no-claim bonus, the better.
One of our best health plans, ‘Care Supreme, offers policyholders an annual no-claim bonus of up to a maximum of 100% of the sum insured as per policy terms. What’s more, by opting for an optional benefit, you can increase your sum insured by as much as 500% under the same plan. The offer is subject to the policy terms.
Leading a Healthy Lifestyle
As the saying goes, “Health is Wealth." Leading a healthy lifestyle is the best way to reduce healthcare costs. Besides, if you have a healthy lifestyle, there will be fewer chances of life-threatening diseases, and hence, you will need to pay a lower premium on your health insurance plan.
Buying Health Insurance Online
Buying health insurance through online platforms helps you save money in several ways. It offers lower premiums due to reduced administrative costs and the elimination of intermediaries. Additionally, health insurance companies provide lucrative discounts on purchasing health insurance plans online. Health insurance plans at Care Health Insurance offer a 5% digital discount. Moreover, buying a health insurance plan online provides flexibility to purchase an insurance policy anytime, anywhere.
Compare Multiple Health Insurance plans
Comparing different health insurance plans online before buying a health policy is vital. It provides significant benefits, including the option to evaluate different plans side-by-side. It enables you to identify the plan with the best coverage, benefits, and premium rates that suit your budget. It also helps you understand the fine print of the policies, ensuring an informed decision.
Opt for Top-up plans
Top-up plans help you save money by providing additional coverage at a lower cost as compared to increasing the sum insured by your base health policy. These plans come into action once your healthcare expenses exceed the deductible limit, which is often covered by your insurer. By paying a lower premium for such top-up plans, you can enhance your coverage without increasing your insurance costs.
Choose an Affordable plan
Choosing adequate coverage ensures you only pay for what you need. This approach helps you avoid the cost of excessive or unnecessary coverage, thereby reducing your premium expenses. Necessary add-ons, like maternity benefits or critical illness riders, provide specific protections that might otherwise require separate policies, further minimising premium costs. Therefore, focusing on essential coverage and add-ons ensures comprehensive protection without overspending.
Balance Your GMC
Group medical coverage offers basic coverage but might have limits on the sum insured or network hospitals. Therefore, by supplementing it with individual or top-up plans, you can increase your coverage limit and get additional benefits at a lower cost compared to purchasing a standalone comprehensive policy. This ensures broader protection while keeping premium costs manageable.
Take advantage of wellness benefits
Many insurers provide discounts or rewards for participating in wellness programmes such as fitness activities and preventive care measures. Our Care Supreme plan provides up to a 30% wellness discount to its customers upon policy renewal. These programmes help lower premiums and reduce out-of-pocket costs for healthcare services. By staying healthy and proactively managing your well-being, you minimise the risk of serious illnesses and related expenses.
Refrain from Filing Minor claims
By avoiding minor claims, you can preserve your NCB, leading to significant premium reductions over time. Moreover, maintaining a higher NCB helps in terms of renewing the policy or switching insurers.
These are the best ways to save money on your health insurance while protecting your loved ones and your finances from medical contingencies.
>> Also Read: 7 Most Common Exclusions Under Your Health Insurance Plan
Wrapping Up!
Making strategic choices can help you save significant money while purchasing health insurance plans. By adopting the approaches mentioned above, you can ensure comprehensive coverage while maintaining financial efficiency, ultimately securing your health and money in the most cost-effective way.
Disclaimer: The above information is for reference purposes only. The health insurance benefits are subject to policy terms and conditions. Refer to your policy documents for more information.
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