Given the significantly higher medical inflation rate compared to overall inflation in India, it’s crucial to have health insurance; however, buyers can reduce their health insurance premiums with a few simple tips.
In personal finance it is important to consider unexpected medical expenses which can drain your finances. Few years ago, the world experienced an unparalleled health crisis in form of deadly pandemic; people are still dealing with long term health issues. Across the world healthcare cost is rising. The biggest factor is that the medical inflation rate is a lot higher than overall inflation. In India hospitalization cost roughly doubles every five years. Hence it has become necessity to have health insurance policies for yourself and your family. Fortunately, with a few simple tips, one can bring down their health insurance premium.
- Start as early as possible
It is important to have your health insurance plan early in life. Health insurance premiums are lower for young people because they are considered to be a low-risk category. This is because younger people are less likely to have chronic health conditions and do not generally require expensive medical care. A health insurance premium will remain the same for the duration of the policy. Even at the time of renewal, the hike in premium is marginal. This means that if you start early, you can have lower premiums for many years to come.
- Choose the right add-ons
Health concerns have become an unavoidable aspect of our lives. Whether it’s major or minor health ailments, consulting a doctor is now a necessity. As our life style changes so does life style diseases such as diabetes, hypertensions, blood pressure, etc. However, it is wise to consider a health insurance plans which can give add on options covers critical illness, life style diseases, maternity, personal accidents, OPD expenses, etc.
- Maximize tax benefits
Health insurance premium is great tax saving instrument under section 80D of income tax and can save upto Rs.25000 in taxes for yourself and your family. Furthermore, if you contribute to the premium for both senior citizen parents, the allowable maximum limit for deduction increases to Rs.50000. Remember, a penny saved is a penny earned, and saving on taxes directly contributes to your earnings.
- Go for an affordable plan
Choose a plan that suits your budget. There are several insurance companies that offer affordable plans that provide good coverages. Even with low sum insured you can get good value health insurance plans and premium. For instance, if your budget allows you to opt for a sum insured of Rs.5 lakhs, there are good options available within this range by several insurers. You can simply opt for this coverage and not opt for the additional features that you don’t need.
- Use wellness benefits to your advantage
Choose health insurance plans that reward you for leading a healthy lifestyle. Some insurers offer discounts for staying fit, getting regular health check-ups, or participating in wellness programs. The inclusion of wellness benefits in health insurance policies serves as a reward system for policyholders who prioritize staying in good health. This might involve activities like app-monitored wellness, step tracking, or keeping a record of physical exercises. Meeting the standards established by insurers makes policyholders eligible for various benefits, such as renewal discounts, redeemable vouchers, or reward points for undergoing health check-ups. Remarkably, meeting the specified fitness criteria could even lead to a heavy discount on the premium during the renewal period.
- Opt for co-pay and deductibles if necessary
Co-pay means a fixed amount or percentage you need to contribute every time you avail of a claim in health insurance. For instance, with a co-pay of 20 per cent, if the total expense for a medical treatment is Rs.1 lakh, you’d personally bear Rs.20000. Deductible signifies a fixed amount you’re responsible for paying before your insurance kicks in. Once this threshold is met, your insurance covers the remaining costs of covered medical services up to the policy limit. Opting for a health insurance plan with higher co-pay and deductible amounts can lead to a reduction in your annual premium. However, this approach means more out-of-pocket expenses in case you require medical care.
- Compare plans from multiple insurers
Don’t just renew your current plan without shopping around first. Compare plans from multiple insurers to see if you can find a better deal. Insurance companies always come up with new health insurance plans, add-on coverages every year. Take advantage of it by comparing health insurance plans online. Talk to your insurance or financial advisor before taking health insurance.