While it is important to own health insurance, most people delay the purchase of a health plan owing to the premium that they would need to pay. The expectation that most people have is higher coverage with lower premium costs. The premium charges are non-negotiable, which lead people to stall the purchase of a health insurance
. We give below some smart ways by which it is possible to lower the health insurance premium
and still gain a suitable health insurance coverage.
Purchase a Health Insurance Plan at a Younger Age
Several elements determine the amount of insurance premium, and age is one of the topmost factors. A younger person would get wide coverage in lesser premium, as opposed to an older person – the fact is premium amounts increase with age, and these are non-negotiable rules of the insurance industry. Since a person is usually in sound health at a younger age, buying insurance at such a stage proves beneficial. Buying insurance when one is youthful not only ensures a lower premium but also helps to skip the waiting period.
Choose Insurance Sum to Suit Your Requirement
Another critical factor is choosing the right insurance sum when planning to buy a health insurance policy. Both higher and lower sums give rise to problems for the insured. Higher coverage means a higher premium, which may not be required. On the other hand, a lower cover could result in the insurer paying a large amount of the bill should there be a medical emergency. Health policy should be chosen based on age, health history, and income while considering the inflation rate.
Buy a Health Insurance Plan Online
Online insurance schemes are at least 10%-20% more economical than their offline counterparts. Given that insurance providers would be working through a virtual space, there are no additional charges such as agent commission, office space, rent, and others. The insuring company can pass on these savings as discounts to the customers. Additionally, when buying online one can make a comparison between several policies from the comfort of their home, can take their time to make an informed decision without feeling pressured.
Purchase Health Insurance for a Longer Tenure
Generally, the policy renewal period of most health insurance plans
is scheduled annually, but there are some insurance plans available with policy terms of 2 or 3 years. For example, HDFC ERGO
offers insurance schemes with one to two-year policy coverage. Choosing a plan with longer policy tenure enables the insured to avail a discount on the premium of around 5% to 15%, which can prove to be a major saving in the future. The percentage of discount or waiver depends; however, on the type of plan as well as the insurer, hence it is advisable to choose schemes with extended policy terms to gain higher returns in the long-term.
Focus on Family Floater Health Plans
By including the spouse and or dependent children in a health insurance policy enables the insured to get a rebate of about 10% to 20% in the rates for the policy premium. Additionally, since the probability of health issues rise with more people, such a plan ensures that all are covered and there is an optimal use of health insurance.
Ask about No Claim Bonus (NCB) Clause before Buying the Policy
The No Claim Bonus feature (NCB) is a significant saving feature. It comes into effect in the following year if the insured has not made any claim in the year preceding. A certain amount is added to your health cover without any additional payment. Staying fit and caring for your health will ensure that you receive maximum benefits – do away with unhealthy food habits, smoking, drinking, and anything that could ruin your health.
Choose a Higher Deductible Option in the Insurance Plan
The sum deductible is what one needs to pay at the beginning of the health cover. A higher deductible amount would mean a lesser amount on the premium charges for the insurance plan. Some insurers offer an intentional deductible alternative, where the insured can choose to pay some percentage of hospitalization charges before making a claim with the insurer. A higher deductible brings down the insurance premium. It is, however, necessary to choose a higher deductible carefully since it would mean elevated health-related expenses that one would need to bear without assistance.
To avoid problems at the time of policy renewal, it would be advisable to make a note of these points to be able to minimize the amount you pay as premium for your health insurance policy.