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.
What is a Health Insurance Premium?
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.
Is it Possible to Lower the Health Insurance Premium?
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.
10 Effective Ways to Reduce Health Insurance Premium
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:
Now that you know what each of these cost-sharing plans means, you can utilise them to lower the premium paid towards your health insurance policy.
#Select the right amount of copay or deductible to lower the premium amount and manage your out-of-pocket expenses.
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:
If you look through the table provided above, you will find that family floater insurance plans are generally cheaper than that of individual plans.
#Choose a family floater plan to cover your family and reduce your premium at the same time.
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.
Factors that Can Increase Your Health Insurance Premium
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!
FAQs about Ways to Lower Health Insurance Premium
Does lower premium payment automatically mean that the insurance policy will not be sufficient?
This is not true because the price of the health insurance policy varies from one insurance provider to another. As a result, the insurance cover offered by one company can be more affordable than the other.
Is maternity care coverage provided under health insurance?
Yes, maternity care coverage is mostly available as an add-on for health insurance policies. Check with your insurance provider or read the policy document to know the coverage.
Is it feasible to lower the cost of health insurance?
Yes, you can lower your health insurance premiums by selecting a plan with fewer add-ons, choosing a higher deductible, maintaining a healthy lifestyle, purchasing health insurance online, etc.
How can I receive a health insurance discount?
Health insurance is subject to a number of insurance company discounts, including wellness discounts and a No Claim Bonus (NCB). In fact, purchasing a multi-year policy can result in a reduction in your health insurance.
Do health insurance premiums go up when you make a claim?
Generally speaking, unless your policy has a claim-based loading clause, filing a claim does not result in an instant increase in your premium. Frequent claims, however, may eventually result in higher renewal premiums.
What is the tax savings on health insurance?
Section 80D of the Income Tax Act of 1961 allows you to save up to ₹25,000 on your health insurance payment. Additionally, purchasing senior health insurance might result in savings of up to ₹50,000 if you are considered a senior citizen.
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At what age should I purchase health insurance?
The minimum age to obtain health insurance in India is 18 years old for adults and 91 days old for children. However, some policies cover infants as young as one day of age.
Will policy premiums be lowered by transferring health insurance plans?
Porting insurance may not lower the policy premium. However, if you select a new plan with the same coverage but a lower insurance cost, you might be able to profit from paying a lower premium than you did for your prior plan.
Which health insurance coverages can I choose to save money?
When purchasing health insurance, select a suitable plan and any necessary add-ons. Consider factors such as your age, lifestyle, type of policy, etc. to save money on premium costs.
How can I compare health insurance policies on the internet?
It could appear like a difficult undertaking to compare plans. However, if you are aware of the parameters you are comparing, it isn't that difficult. Here are a few important factors to consider while comparing health insurance policies:
- The premium amount
- The sum insured amount
- Co-payment clause
- Sub-limits on policy
- The insurer's network hospitals
- Waiting time
- Room rent charges
- Daycare treatment coverage
- Cashless services
Is a family floater plan more expensive than individual health insurance?
Your overall coverage and the sort of individual health insurance policy you have will determine your decision to purchase either a family floater plan or individual health insurance. The goal is to obtain adequate insurance coverage and sum insured in the event of any emergency. Regardless of whether you choose an individual or family plan, your premium is likely to be higher if you have chronic illnesses or reside in an area where there is a higher risk of accidents, pollution-related health problems, etc.
Does my coverage change if I pay a lesser premium?
No. Your coverage might not be affected by the insurance policy you choose. No claim bonuses are one of the good reasons why the premium rates are lower. Suppose the individual health insurance plan you select has a high sum insured but a cheap premium. In that case, it is most likely because you have a perfect health and lifestyle history or because you have never filed a claim during your prior employment.