The increasing pollution levels, stress on healthcare facilities, poor lifestyle, and unhealthy diet have all highlighted the need for comprehensive health insurance. If you do not invest in medical coverage, and a chronic ailment demands hospitalisation, you will have to use your hard-earned lifelong savings while still falling short of paying off all expenditures. However, most people avoid purchasing health insurance, citing high premiums as one reason. But what if we told you that there are several ways to lower your premium burden? Let’s talk without surprising you anymore.
Tips for Cost-Effective Health Premium
You can consider the tips below to reduce the premium of your healthcare policy.
- Invest Early
As recommended by experts, consider buying a health insurance policy soon after you start your career, around the age of 22 to 25. The reason is that the younger you are, the higher your chances of being free of illnesses.
As you age, illnesses such as diabetes, thyroid, and a few cardiac-related ailments become more common, ultimately increasing the insurer’s risk and, in turn, your premium.
- Choose a Family Floater Plan
If you have a family that includes a spouse, dependent parents, and children, consider a family floater plan instead of purchasing separate policies for each of them. The premium for this plan is higher than that of a single individual policy, but it is much lower compared to two to three distinct individual plans.
Family floater plans provide coverage for up to eight members. You can also include your siblings and parents-in-law in the plan, subject to certain terms and conditions. However, remember that the age of the oldest member is considered when calculating the premium.
- Long Term Plans
Health insurance is offered for periods of one, two, and three years. The premiums for these plans vary significantly. However, the longer the tenure, the larger your savings will be. Let’s see how.
Suppose you apply for health insurance. Based on the risk assessment, the premium quotation is Rs 8,000 for a one-year policy and Rs 20,000 for a three-year plan. You may believe a one-year plan is great, but it is not.
When multiplied by three, the resultant premium is Rs 24,000, which means an extra payment of Rs 4,000. Besides that, it is possible that you may develop some ailment during the one-year policy period. When you renew your coverage after one year, this disease will raise the premium.
- Choose Add-ons wisely
Add-ons are available for an additional premium. They are noted for covering different health scenarios that a standard plan does not. Some common riders include maternity coverage, a pre-existing disease waiting period waiver, and critical illness coverage.
Suppose you are a 28-year-old man with an active lifestyle but suffering from a thyroid disorder. Every morning, you take a tablet that costs 2-3 rupees. In this situation, purchasing a PED waiting period waiver for thyroid is not a good idea.
- Higher Deductible
The term “deductible” refers to the share of medical expenses you must pay out of pocket before your insurer reimburses you for the balance expenditures of your medical bill. Let us see how this works.
Assume you set a deductible of Rs 25,000. You fell ill, and the hospital treatment costs approximately Rs 35,000. In this situation, the insurer is only liable for Rs 10,000. However, if your treatment costs Rs 20,000, you must pay the entire amount out of your wallet.
You may opt for a higher deductible when you are young and have no underlying health issues.
- Timely Renewal
Timely renewal is vital if you have not filed any claims throughout the policy year. The insurer rewards you by raising the sum insured of your policy for the same premium or discounting the premium amount by a specified percentage.
For example, if you do not submit a claim for five years in a row, you can use the no-claim bonus incentive to reduce your health insurance premium by 50%. In another case, your insurer may increase the sum insured amount by 50% for the same price.
- Comparison is the Key
Each insurer is different. You can find variations in coverage, waiting period, rider features, and, most importantly, claim settlement ratio.
Go to the health insurance aggregator’s website to compare each parameter in detail. Opt for a plan that does not compromise coverage by charging lower premiums. You must also use a health insurance premium calculator to understand the premium burden.
- Consider Group Health Cover
Group insurance is a type of health coverage provided by your employer. It remains active until you are a part of that organisation. The sum insured under this plan typically ranges between Rs 5 lakh and Rs 10 lakh, which is adequate if you are young and do not suffer from any pre-existing health issues.
In this case, you may choose an individual healthcare plan with a lower sum insured and enjoy an affordable premium.
Conclusion
Health insurance is a must-have financial product. It covers your hospital fees and ensures you do not lose your savings during a medical crisis. However, remember that to minimise your premium, you should not compromise on the insurer or the coverage provided. Always choose an insurer with a vast network of hospitals, a simple claim process, and adequate coverage.
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