Health insurance is an absolute necessity today, where medical expenses are skyrocketing, and diseases are becoming more prevalent. Health insurance can help you cover the expense of hospitalization, medicines, tests, and other treatments in case of an illness or injury. However, health insurance also comes at a price – the premium that you have to pay every year to keep your policy active.
The premium of your health insurance policy is based on several factors, like your age, medical condition, family history, lifestyle, type of plan, sum insured, etc. The higher the risk of you making a claim, the higher the premium you have to pay. But does that mean you must compromise on your health coverage or pay a hefty amount every year? Not necessarily. There are some smart ways to save money on your health insurance premium without compromising your coverage. Here are some tips that can help you do that:
- Buy health insurance online: Buying health insurance online can save you money in two ways. First, you can compare different health insurance plans from various insurers & choose the one that suits your needs and budget. Second, you can save on the commission or brokerage fees you would have to pay if you buy through an agent or intermediary.
- Buy health insurance at a young age: The younger you are, the lesser your health insurance premium will be. This is because you are less likely to have any pre-existing diseases or health issues that can increase your risk of making a claim. Moreover, buying health insurance at a young age can help you lock in a lesser premium rate for a longer duration, as the premium usually increases with age.
- Choose a higher deductible: Opting for higher deductibles (the amount you pay out of pocket before insurance kicks in) can lower your premium costs. However, ensure that you can comfortably afford the deductible amount when needed.
- Opt for a family floater plan: If you need to buy health insurance for your entire family, it makes sense to opt for a family floater plan instead of individual plans for each member. A family floater plan covers all your family members under a single sum insured and a single premium. With a family health insurance plan, you can save money on multiple premiums and also get a higher sum insured for each member.
- Join a health savings account (HSA): An HSA is a kind of savings account that lets you set aside money for health expenses on a pre-tax basis. You can use the money to pay for your deductible, copays, coinsurance, and other qualified medical expenses. The benefit of an HSA is that you can lower your taxable income & save money on taxes and premiums.
- Avoid unnecessary add-ons: Add-ons are optional features to add to your base plan for extra benefits or coverage. For example, some add-ons may cover maternity expenses, dental treatment, critical illness, etc. While add-ons can enhance your coverage, they also increase your premium. Therefore, you should avoid buying unnecessary add-ons that you may not need or use.
- Claim judiciously: Every time you claim your health insurance policy, you lose the no-claim bonus (NCB) you would have otherwise received. NCB is a discount on your premium for every claim-free year. The NCB can accumulate over time and reduce your premium significantly. Therefore, you should claim judiciously and only for major expenses. You can pay from your pocket for minor expenses and preserve your NCB.
- Bundle your insurance policies: Some insurers offer discounts or incentives for buying multiple policies, such as health, life, auto, or home insurance. By bundling your insurance policies, you can lower your premium or get other benefits.
- Review your coverage: Sometimes, you might be paying for more coverage than you need or use. For example, if you are young and healthy, you might not need a comprehensive plan that covers everything from maternity care to vision and dental services. You can opt for a more basic plan that covers only the essential benefits and save money on your premium.
- Buy top-up or super top-up plans: A top-up or super top-up plan is an additional plan that provides coverage beyond the limit of your base plan. For example, if your base plan has a sum insured of Rs 5 lakh and your top-up plan has a threshold of Rs 5 lakh and a sum insured of Rs 10 lakh, then your top-up plan will kick in only if your claim amount exceeds Rs 5 lakh. A top-up or super top-up plan can help you enhance your coverage at a lower cost than buying a higher sum insured base plan.
Health insurance is a vital investment for your financial and physical well-being. However, it does not have to burn a hole in your pocket. By following these tips, you can save money on your health insurance premium and get the best value for your money.
Carepal Secure is an excellent option for buying affordable health protection plans in India. By choosing the CarePal Health Protection Plan, you can secure your family‘s health and access affordable premiums without compromising on the quality of service.
