6 Smart Ways To Save Money With Health Insurance

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 treatment costs have risen as high as 8% in the last two years. 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 but also get huge tax deductions while buying family mediclaim insurance. These cost-effective measures can save you money while securing your family with adequate mediclaim coverage. In this article, you will learn six intelligent ways of saving huge funds with a family health insurance plan.

Six Ways Health Insurance Can Be a Money-Saver

1. Buying Health Insurance at 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 till 35 years of age and regularly renews the policy, on completion of his/her 40th year, s/he will get a 10% discount on the subsequent renewal premium. However, this discount is subject to the terms & conditions mentioned in the policy brochure.

2. 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 against 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 cover for elderly family members to ensure savings under a family floater plan while promising uncompromised security to your parents.

3. Claiming 80D Deduction on Income Tax 

The most evident benefit of buying health insurance is that it is a tax-saving investment. You can save tax up to INR 25,000 on individual health insurance premium payments u/s 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.

4. Choosing Policy Term 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 2 years or more. 

At Care Health Insurance, we offer an additional discount of 10% on premiums if you buy a three-year health cover. However, this discount is applicable only to select policies, including Care and Care Advantage Plans, and is subject to the terms & conditions mentioned in the policy documents.

>> Also Read: 7 Most Common Exclusions Under Your Health Insurance Plan

5. Earning 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 hospitalization expenses. Especially during prolonged illnesses like cancer or paralysis, an increased sum insured amount 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. 

6. 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 less premium on your health insurance plan.

These are the best ways to save enough money for your future while protecting your loved ones and your finances from medical contingencies.

Disclaimer: Please verify the policy details and coverage with the official policy documents. Also, kindly consult a professional medical expert to verify the details of health concerns.