Smart Ways to Lower Health Insurance Premium

4 min read

Though having a health insurance plan is a necessity for every individual, most people delay its purchase because they don’t want to start paying the premium early on when they are still young and healthy. Because the normal conception of people is that why they should pay premium when they are fit and have no diseases. Moreover, when it comes to insurance, people want to gain the maximum coverage while paying a lesser premium. Since premium charges are fixed and cannot be negotiated, that is one of the reason why people tend to delay the purchase of a medical insurance for as long as possible.

However, there are many smart tips which can be used to lower the premium rate of your mediclaim policy and have an appropriate coverage for your health.

Buy health insurance while you are young 

The amount of insurance premium that you pay is determined by many factors. Age is considered as one of the most important factor that determines the premium you pay for your insurance. Young people are likely to receive wider coverage at a less rate of premium, while the elderly would have to pay more to get extensive coverage. Thus, the premium amount you pay goes up with age as per the rule of the insurance sector. So, purchasing a mediclaim policy at a young age is beneficial as it skips the waiting period and allows you pay lower rate of premium.

Choose insurance amount as per your requirement

The insurance sum or the amount of money you consider while planning to buy a medical insurance is also very important factor that determines your policy premium.  There are limitations in both the cases, including when the sum insured is less as well as when it is more. If the sum insured is more, you get wider coverage but you have to pay more premium. Likewise, if the sum insured is less, you get to pay lower premium but you get to enjoy less coverage. However, in this case, you might have to pay a lot of money on medical bills from your own pocket in case any medical crisis emerges. So based on your requirement, choose a policy as per your age, medical history, and your income, while keeping in mind the rate of inflation.

Purchase your medical insurance plans online

Another smart way to enjoy lower premium price is by buying your health insurance plan online. Schemes available online are as much as 10 – 20 percent less expensive than the ones that are available offline. In case of online insurance, there are no additional charges levied on the customer because the insurance company could save on many costs like office space rent, agent commission and so on. Thus, they offer these savings as discounts to consumers.

Further, buying policies online makes it easy for you to compare between the different policies and to choose the best one. And of course the advantage of buying a policy without having to step out of your house cannot be ignored.

Buy health insurance for long duration 

Duration of policy renewal in most health insurance is annual. However, certain policies offer duration term of 2-3 years. If the plan duration of the policy is long, you can expect better discount on the premium.  However, the discount depends on the types of policies and the insurance company. Thus, it is better to select a scheme that presents comprehensive coverage so that you could enjoy high returns in the long run.

Concentrate on buying medical insurance plan for family/ Family floater plans

Family floater plans are those that offer extended coverage to all the members of your family. In simple words, a floater health insurance plan would encompass all your family members within one coverage and allow them to enjoy benefits alike. Thus, you can enjoy 10-20% rebate in policy premium by including your spouse and kids in your policy who are your dependent. Further, since health issues are on the rise, having an insurance plan for the entire family ensures that everyone is covered and safe.

Discuss the No Claim Bonus (NCB) clause before purchasing an insurance policy

NCB or the No Claim Bonus is a significant feature that helps the insured person to enjoy some savings. This is offered in the subsequent year if the insured person hadn’t made any health insurance claims in the previous year. In this case, the insured person receives an additional health cover without paying anything extra.  This way, you can claim maximum advantages by paying less.

Consider high deductible alternatives in the cover plan 

The high deductible sum insured means that you can pay less premium for the insurance plan. Thus, sum deductible is the amount that you have to pay at the start of an insurance cover. Some health insurance plans offer planned deductible option. In this case, the insured person can opt to pay certain amount of the hospitalization charges before making the claim. Having high deductible brings the premium rate down. But you must tread carefully while choosing higher deductible.

Also Read: List of Cheapest Health Insurance in India for 2022

To Conclude

Having a health insurance is very important for everyone, especially in the current scenario. The rise of numerous diseases like covid19 as well as the presence of so many other critical health conditions make it very important for every individual to have a mediclaim policy. If the high premium concern is making you apprehensive about buying an insurance policy, you must make note of the above points to lower the premium rate.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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