6 Tips to Reduce Your Health Insurance Premiums

By Adhil Shetty | March 21, 2017

6 Tips to Reduce your Health Insurance Premiums

Rising medical costs mean Health Insurance is an absolute, must-have protective cover. If you have not purchased an independent health cover and are relying on an employer-provided group cover, you may be at risk.

If high premium costs are deterring you from seeking this essential safety net, here are some tips to ensure insurance with optimised premium costs.

Additional Reading: How To Plan Health Insurance Premium Considering Inflation

1: Opt for a lower personalised health cover

To start with, buy a plan with low cover. Some cover is better than no cover at all. While being under-insured is risky, having a basic, no-frills cover means you at least have something to protect you. A cover of Rs. 2.5 lakhs for a 30-year-old individual, costs around Rs. 3,500. With this cover in place, you can gradually work towards getting larger cover when your financial situation so permits.

2: Seek insurance early

The earlier you opt for Health Insurance, the cheaper it is. When you are young and healthy, the risk is substantially lower for an insurance company, resulting in lower insurance premiums. For example, if you purchase a Tata AIG Medi-Prime Health Insurance plan for a sum assured of Rs. 5 lakhs between the age of 18 and 35, the annual premium payable would be Rs. 5,532. The premium for the same plan would be Rs. 6,991 for individuals between the age of 36 and 45.

3: Opt for a deductible

Under a deductible clause, the insurance company bears the medical expense only when it exceeds a threshold. If you have corporate insurance, you can get personal insurance with a high deductible to lower your overall insurance premium. Effectively, by opting for a higher deductible, you are liable to pay lower expenses out of your own pocket or using your employer’s insurance, while the larger expenses can be claimed from the insurer. The reduction in the insurer’s cost is offered back to you as a discount in the annual premium.

4: Opt for voluntary co-payment

A voluntary co-payment clause helps you split your medical costs with your insurer. For example, if you opt for co-payment of 20%, the insurance company is likely to offer a discount on the premium. Under a co-payment clause, you will voluntarily share a fixed percentage of the medical expenses, thus reducing the chances of an unnecessary claim and fetching a discount on the premium for the insurer’s reduced liability.

5: Buy Health Insurance online

Instead of purchasing a product thoughtlessly based on a friend’s or an agent’s suggestion, go online and compare all that’s available in the market. This would help you get the best policy at an affordable price. There are multiple online financial marketplaces offering various insurance plans on one platform. Several insurance companies offer a discount on premiums for online purchases.

6: Opt for longer tenure policies

When you are buying Health Insurance, opt for a tenure longer than one year by making premium payments for multiple years. Most health insurers offer discounts ranging from 5% to 15% on policies with long tenures.

When you attempt to cut costs on Health Insurance, don’t just focus on lowering the premium. The right approach is to strike a balance between adequate protection and a pocket-friendly premium.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Health Insurance Msn Yahoo
Adhil Shetty

About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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