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.

Health Insurance

Health Insurance is an important financial tools for securing our health against unexpected, uncertain and sudden medical expenses which can drain finances rapidly. The cost of medical expenses has been increasing every year which has been putting huge financial burden on people. In India hospitalization treatment cost will roughly doubles in every five years. Even though Health Insurance has help people to deal with high medical cost in recent year.

There has been steady increase in health insurance premium every year which is cause of concern. In this article will help you how to reduce your health insurance premium

Lower Premium for Young Adults

It is important to have your health insurance plan early in life. Health insurance premiums are lower for young adult 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.

You can choose add-ons wisely to keep your health insurance premium lower. For example if you are frequent traveler take personal accident add-on covers in your health insurance plans. Similarly do not take add-on covers unnecessarily which you do not require. Asses your health needs before purchasing health insurance with suitable add-on covers without breaking your financial budget.

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 paisa saved is a rupee earned, and saving on taxes directly contributes to your earnings.

Go for an affordable health insurance plan

Choose a health insurance plan that you can afford to pay premium regularly every year. There are several insurance companies that offer affordable plans, provide good coverages with lower health insurance premium. 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 or more, there are good options available within this range by several insurance companies. You can simply opt for this comprehensive coverage and not opt for the additional features that you don’t need.

Discount in Family Floater Health Insurance

Most of Insurance companies provide discounts for family floater health insurance plans. These discount may vary from insurer to insurer. Family floater health insurance provides coverages and benefits to all members of insured family by paying discounted health insurance premium. Family floater policy premium is much more affordable than individual single health plan for family members. There is lot of financial saving for going with floater health plans.

Long Term Health Insurance

Health Insurance are annual term plan with renewal every year. There are chances insured may forget to renew his annual health insurance policy. There is long term health insurance plans for 2 or 3 year options available with long terms discounts on health insurance premium. You can save your premium on long term health insurance than on yearly health insurance. Long term health insurance can also save money on premium hikes every year than in annual health insurance.

Use wellness benefits to your advantage

Choose health insurance plans that reward you for leading a healthy lifestyle. Some insurance companies offer discounts for staying fit, having healthy lifestyle, 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 or deductibles in Health Insurance

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. Co-pay benefits is optional cover in health insurance which can lower your premium.

Deductible signifies a fixed amount you’re responsible for paying before your health insurance claims kicks in. Once this threshold is met, your insurance covers the remaining costs of medical expenses up to the policy coverage limit. Opting for a Top up or Super Top-up health insurance plan with higher deductible amounts can lead to a reduction in your health insurance premium.

Cumulative Bonus in Health Insurance

Comprehensive health insurance plans will have cumulative bonus as benefits for every claim free years. Cumulative bonus in health insurance means rise in sum insured by fixed percentage without premium increase. Cumulative bonus will increase sum insured by 10% to 20% every claim free year depending upon health insurance plans. Thus it is wise have a health insurance plan with higher cumulative bonus.

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 through online, insurance agent, financial advisor. Insurance companies always come up with new health insurance plans, add-on coverages every year. Educate yourself in health insurance plans for comprehensive coverages, features, benefits, claim process, etc. Take advantage of it by comparing health insurance plans online. Talk to your insurance agent or financial advisor before taking health insurance.

Conclusion

Health Insurance premium will increase every year by 10% to 15% making premium payment a burden on your financial budget. You have to put efforts to lower premium by auditing your health needs, health insurance policies, features, benefits and compare your health insurance policy with other health insurance plan. Get yourself educated with your health insurance before buying health insurance policy.

These keys tips shall help you to lowering your health insurance premium significantly. Be informed buyer of health insurance plan which can cover your health needs, gives you higher coverages, features, benefits without putting premium payment pressure on your pocket.