Tips & Tricks to Reduce Health Insurance Premium

Medical inflation has become a growing concern for many Indians, especially those in low and middle-income groups. With healthcare costs steadily rising, managing medical expenses can feel overwhelming.

But, what should one do in this scenario?

Opt for a health insurance policy, of course!

With the rising cost of healthcare, the price of health insurance premiums has also seen a steady increase. So, what should you do in this situation? Here are 10 practical and effective ways to reduce health insurance premiums.

The amount that the insurer charges in exchange for providing financial coverage under a health insurance policy is known as the Premium. You must pay this annual charge in order to maintain your continuous health insurance coverage.

Your age, medical history and other criteria usually determine the premium you must pay.

The sum insured in health insurance amount is typically much more than the premium you have paid. For example, you might have chosen to pay a premium of a few thousand rupees for a low-cost insurance plan. In exchange, your insurance company might give you coverage worth millions or even crores.

Yes, it’s absolutely possible to lower your health insurance premium, and the best part is that it doesn’t require magic, just smart strategies. 😎

There are several ways to reduce costs without compromising health protection, from making smart choices about coverage to leveraging available discounts.

Comparing around for plans, coverage options, or bundling policies can also uncover surprising savings. Whether it's maximizing tax credits, cutting off unnecessary coverage, or negotiating with your provider, the path to a more affordable premium is made with informed choices and proactive planning.

Check: How to Calculator Health Insurance Premium Online?

Are you wondering how to reduce your health insurance premium without compromising on coverage?

The good news is there are plenty of smart and simple ways to lower your premium while still staying protected.

 Here are 10 effective ways to lower your health insurance premium!

1. Purchase the Health Insurance Policy at an Early Age

One of the proven ways to reduce premium payments is to purchase the health insurance plan when you are young. 

Most insurance providers consider factors like your age and medical history before they provide you with a health insurance policy. That is why availing a cover becomes more difficult as you get older.

With common age-related diseases like diabetes, heart-related conditions, and blood pressure issues adding to your medical history, insurance providers increase the premium payments for your insurance policy.

#Hence, buying a policy at an early age is recommended to avail yourself of a lower premium.

2. Go for a Policy with Less Sum Insured

When you opt for a lower sum insured under your policy, you can avail it for low premium payments.

You can receive a lower sum insured at the onset of the policy and then increase the amount as time goes by, making your policy more affordable. However, always ensure that the coverage provided you is sufficient to cover your healthcare requirements.

#With a lower sum insured, you get a low premium for health insurance.

3. Opt for Copay and Deductibles

There are health insurance policies that allow you to voluntarily opt for deductibles and co-pay clauses under your health insurance policy.

But, before opting for them, you should first learn about what each of them implies:

4. Balance Your Different Health Insurance Plans

Sometimes, your employer provides you with a group health insurance policy, and you avail an additional individual health policy to strengthen the protection towards your finances.

In addition, policyholders also opt for a family floater plan that can help to insure their family in addition to themselves.

With so many insurance policies at play, it can become difficult for you to manage your premium payments towards them. In this scenario, it is best to make sure that you avail your individual health insurance, keeping in mind the benefits you can already avail from your other insurance covers.

#Choose the health insurance plans wisely to manage the premium payments more effectively.

5. Opt for Top-Up Plans

Top-up plans are extremely useful when it comes to availing a high coverage without paying a huge premium towards it.

Top-up plans usually help to split your cover into two parts. This allows you to raise a higher claim that can exceed the pre-decided limit.

Let us look at an example to make things easier:

For example, if you have a health insurance plan of INR 5 lakh and expect a medical cost of INR 7 lakh. Once you pay the deductible amount from your base policy, your top-up plan will cover the extra INR 2 lakh.

#Avail the top-up plan for covering high medical costs while keeping premiums low.

6. Seek Long-Term Healthcare Insurance Policies

The premium payments towards long-term insurance policies are usually lower than those of the traditional plans with the annual term. Thus, availing of a long-term health insurance plan with a 2-3 year tenure can help to lower your premium payment by a substantial amount.

In recent years, several insurance companies have made this long-term health insurance plan readily available. To ensure that you maximise your benefits from these plans, compare the policies offered by various insurance providers to choose the one best suited to your requirements.

#A multi-year health policy gives you the assurance that your coverage is guaranteed for a longer time at an affordable premium.

7. Opt for a Family Floater Health Insurance Plan

Before knowing how a family floater insurance plan can help you to lower your premium payments, you must first learn the difference between individual and family floater plans.

Their difference can be illustrated in the table below:

8. Compare the Affordability of Plans Online

When you compare and purchase policies online, you will be able to find attractive offers and discounts on your insurance policy. With these offers, you can reduce the premium paid towards your insurance policy to quite an extent.

Choosing online insurance offers the following advantages in addition to reasonable pricing.

• The ability to buy health policies whenever and whenever.
• You can purchase straight from the insurer without dealing with any intermediaries.
• The entire insurance process is significantly more convenient compared to the offline method.

#Comparing policies online helps you find affordable plans that match your needs.

9. Avoid Filing Minor Claims

In India, the majority of health insurance providers provide incentives, including the No Claim Bonus (NCB), for not submitting claims during the preceding policy year.

Therefore, in order to receive the NCB benefit, you must abstain from making small claims on your health insurance. At the time of policy renewal, certain insurers may also provide it as a discount that lowers your health insurance premium cost.

#Avoid raising claims in a policy year to receive a No-Claim Bonus, which may result in a discount on premiums.

10. Maintain Good Health & Lifestyle

Maintaining your health and fitness can result in a renewal discount. For example, health insurers might request clients link their insurance app with fitness monitoring applications. As a reward for trying to keep in shape, you may be eligible for a renewal discount if you walk or jog 10,000 steps a day for a few months.

Therefore, find out from your insurance if any incentives are available for staying in shape so you may benefit from both cost savings and excellent health. Also, if you are in good health, you have to pay less to undergo medical treatments.

#The fewer health problems you have, the less premium you will have to pay. 

When calculating your health insurance premiums, insurers consider a number of factors. The following are the most significant factors affecting your payable premium rates:

• Age: It is the main factor influencing premium rates. Insurers may raise premiums as you age.
• Pre-existing Conditions: Your insurance may raise your premiums if you currently have any health issues, such as diabetes, asthma, etc.
• Lifestyle Factors: Your decisions, like as smoking and drinking alcohol frequently, may have an impact on the premium costs.
• Amount of Coverage: The cost of premiums is closely correlated with the type of coverage provided. The premiums increase with the level of coverage.
• Family History: You can be required to pay higher premiums if you have a family history of certain illnesses, particularly those that are considered critical, like cancer or heart conditions.
• Location: When you are admitted to the hospital, your city of residency affects your medical costs. Therefore, the premiums that insurers charge are also influenced by your location.
• Policy Type: The premiums are determined by the policy you have selected. Regular policies offer reasonably priced health insurance, while critical illness plans may have higher premiums.

Finally, remember...

Even if you are looking to save on premium payments, it is important to note that you must not compromise on the coverage you avail from the plan.

This is because seeking premium medical care can cost you a substantial amount, which can be hard to pay out of your pocket. That is why opting for a cheaper plan with lesser benefits is probably not a good idea when it comes to availing a health insurance plan!