Simple Ways To Lower Your Health Insurance Premium
Published On Apr 24, 2022
Table of Contents
- 10 Tips to Lower Health Insurance Premium
When health emergencies or sudden illnesses strike, you won’t end up exhausting all your life savings in hospitalisation and medical bills. However, data shows that people in India are still paying for their medical bills and expenses out-of-pocket, and the proportion is staggering. High premium rates compel people to steer away from health insurance. But you should also know that lower premiums do not always have to mean lower coverage. If you are prudent about it, you can trim down your premium, and still get optimum coverage, so let’s learn how.
10 Tips to Lower Health Insurance Premium
Opt for Insurance Early in Life
Age is one of the primary factors that determine the premium rate of a health insurance policy, and as you inch closer to a higher age group, the premiums shoot up. This is because, at a younger age, you are less likely to suffer from any medical conditions. As you grow older, age-related problems start to show up, leading to an increased premium quote.
Apart from cost-effective premiums, buying insurance at a young age also means you will be covered early. Moreover, any diseases diagnosed later will be covered under the health plan without being categorised as pre-existing illnesses. You would have served the requisite waiting periods required for certain surgeries or treatments and be able to make the most of your health insurance.
Compare Insurance Policies
Before buying medical insurance, make sure you research all the health insurance options available in the market. Some insurance policies might be charging high premiums but that does not necessarily mean they offer better medical coverage.
Thus, make sure that you consider various aspects such as the features, benefits, exclusions, riders, etc. and make your decision after carefully weighing all their pros and cons. Take advantage of the free-look period and read the fine print without letting the premium amount be the deciding factor.
Choose Top-Up Plans
In the light of high premium rates discouraging people from buying health plans, insurers have come up with top-ups. With age, our insurance requirements tend to change and instead of getting an entirely new policy, you can choose to extend the coverage with top-up plans.
These are policies that kick in after the basic threshold limit of the sum insured has been reached. So, if the sum insured of your existing plan is falling short in securing you, top-up plans can offer additional coverage over and above your health plan. Thus, you don’t need to buy a new health policy or upgrade your coverage for a higher premium as top-ups come at a cost-effective rate.
Gather Cumulative Bonus
Some insurance providers offer rewards for making zero claims throughout the insurance policy period. You can avail this reward in the form of a cumulative bonus which varies from one insurer to another.
Some insurance companies might offer an extra sum insured without increasing the premium amount whereas others might provide a discounted premium rate. By accumulating the cumulative bonus and opting for timely insurance renewal, you can enjoy these rewards!
Choose a High Deductible
Deductible refers to a fixed amount that the insured must pay before the coverage kicks in. This means that the policyholder pays expenses up to that limit, and the insurer fills in for the rest, over and above that amount.
So, how does this benefit you? By opting for a higher voluntary deductible, you can avail lower premium rates. But then you’d be paying for expenses up to a certain amount yourself. Thus, it is recommended to think this through before agreeing to pay a high amount.
Use the Benefit of Co-Payment
Co-payment is a feature whereby the insurer and the insured together bear the burden of the claim in an agreed ratio. By choosing co-payment, you must pay a fixed percentage of the claim amount and the rest will be paid for by the insurer.
Opting for a higher co-payment will lower your health insurance premium payable. However, before deciding, it is worth taking into account your medical history. If you are likely to need healthcare services, then you are better off without a co-pay arrangement. To learn the difference between copayment vs deductible, head over to our platform now!
Buy Health Insurance Online
Online health policies are much more affordable than their offline counterparts. This is due to the absence of an intermediary in the online mode of purchase. Therefore, it is recommended to buy health insurance online to get a cost-effective premium and for minimal online documentation. Head over to Finserv MARKETS to choose a suitable insurance coverage now!
Consider Long-Term Health Insurance
Many health insurance plans have a short policy period of one year and need to be renewed before the due date for continued coverage. But now, you can also find long-term health plans that come with a policy tenor of 2 to 3 years with a significantly lower premium quote. Thus, with long-term health policies, you can enjoy insurance coverage at an affordable price and avoid the trouble of renewing it every single year!
Watch Out for Floater Policy
A floater policy is a family healthcare cover that ensures coverage for an entire family. You can include yourself, your spouse, dependent children or parents under a floater health insurance policy. A family floater insurance helps save a lot on the premium amount instead of paying for an individual health insurance plan for each of your family members.
Stay Healthy & Fit
Insurance companies offer affordable premiums if you are a non-smoker, don’t consume tobacco in any form and do not consume alcohol. The logic is simple, unhealthy habits make you more prone to developing ailments, even life-threatening and/or chronic illnesses. So, stay fit and healthy and follow a nutritious diet.
With this, you can easily avail a lucrative premium quote for your health insurance policy! Remember to always compare various health plans offered by insurers and purchase insurance online. Before that, you can get an estimate of the premium amount with our easy-to-use health insurance premium calculator.