10 Exclusive Discounts That Reduce Health Insurance Premiums
Published On Dec 10, 2019, Updated On Jul 01, 2021
Discounts and offers may tempt you to go on a shopping spree.
That’s why almost every industry is offering discounts on their products.
And the health insurance industry is no exception.
Insurance companies in India are outwitting each other by showering a sea of attractive discounts and offers, thereby luring customers to buy the plan.
Insurers offer policy buyers exclusive discounts on insurance premiums in many ways. Such discounts and offers give an extra push to people for investing in a good health insurance . By offering health insurance discounts, insurance providers let customers enjoy extensive benefits.
- They make plans more attractive for people
- They reduce premium rates and make the plan affordable
- They tempt individuals to buy health insurance
- They encourage people to include family members in the scope of coverage
Discounts on health insurance plans take numerous forms and are available in different types. Explore the most common types of discounts on health insurance.
1. Discounts on Policy Tenure
A few health insurance policies come with premium discounts based on the policy tenure. If the policy is purchased for 2-3 year tenure and the premium is paid at once, then discount on premium is offered to the policy buyer. The discount may range between 5% and 20%, depending on the policy purchased.
2. Family Discount
This is a kind of discount in which other family members are covered along with the proposer. However, it is applicable only once by including a member. The discount is not available for adding another member.
For example, a premium discount of 5% is offered under Reliance HealthGain Policy for adding 2-3 family members. And a 10% discount is given on adding four or more family members to the scope of coverage under the same policy.
3. Discounts for Women:
Insurance companies like Reliance General and Bajaj Allianz offer reduced premium rates to female members. This initiative has been taken as a part of women empowerment. The discount is applicable in case the policy is proposed by a woman. Health insurance discounts for women may range between 5% to 10% of the total policy premium.
4. Wellness Rewards & Vouchers:
Many insurance companies also offer discounts for being healthy. There are some plans that provide discount vouchers. You can redeem these vouchers at several health centres and pharmacies. On the other hand, some health insurance vouchers are payable next year in case you stay healthy in a policy year.
One of the examples of the policy that offers such discounts is the Energy Plan by Apollo Munich. A plan for diabetics, this policy offers Wellness Program i.e. up to 25% Premium Discount based on the results of Wellness tests.
5. Free Health Check-ups
Not a monetary discount, it lets customers avail of a free health check-up after a block of continuous policy years. This encourages customers to continue with the policy by renewing it before the due date without any break. In general, medical check-ups are conducted in a block of 2-4 continuous years. For instance, Star Health’s Family Health Optima gifts free health check-up for every claim-free year.
6. Network Discounts:
Most of the insurance companies arrange preferred provider organizations where members are able to avail discounts on each treatment received. Such discounts are determined by the insurance company and the healthcare provider. The treatment costs of the network hospital are based on a percentage discount on offering each of the services. Getting treatment at a network organisation enables the insurance company to keep medical expenses low.
7. Value-Added Services:
Insurance companies also offer value-added services to customers. This is a type of discount that comes mostly in the form of OPD packages, free health check-up, and many others. One of the key examples of the value-added service is free yearly health checkups of insured members by Religare Health Insurance.
8. Company Profits:
Some insurers in India provide insured members with exclusive discounts, vouchers as their figures touch a certain value on the profit margin. The insured members can use these vouchers when receiving treatment in network hospitals or buying medicines.
9. No Claim Bonus:
No Claim Bonus (NCB) is a type of feature which lets the insured member gain bonuses in the form of rewards in every claim-free year. For every year if a claim is not filed, the insurer offers NCB benefits. The bonus continues to add until the insured makes a claim or its maximum allowable limit is reached. The NCB is also transferred when migrating to a similar policy of a different company.
10. Cumulative Discounts on Premiums:
While buying a health policy, you can choose to pay premiums for a couple of years together. In this case, you can enjoy premium discounts offered by the insurance company. Such premium payments are also advantageous for the insurer as they get a lump sum amount at the time of selling the policy. Generally, in such a case, insurance companies offer 5% to 10% discounts on the annual premium amount.
Apart from attractive coverage benefits, premium discounts on health insurance are additional benefits. An adequate cover can provide you with many benefits and protect you from financial commitments. By getting discounts on your policy, you can save your hard-earned money.
In a nutshell, health insurance discounts are made for you. If you don’t avail them, who will? Buy a new policy today or add your family members to the policy to earn discounts if you have not done yet.