Every year many people in India end up selling their assets like gold and property or end up breaking their FDs for treatment just because they don't have health insurance. In fact, some people even end up borrowing money from friends and relatives. As per research, only 36% of people in India are covered under health insurance. But the number should be way higher considering the importance and benefits of a health premium plan.
But before buying a health insurance premium, it is important to keep a few things in mind to have maximum benefits through less premium amount. Here are some points that will help you save money on your health insurance premium-
1. Compare Before Buying
Use online internet surfing to get good comparisons not only to save money but also to unleash exciting features and benefits. Do not compromise on features in lieu of less price.
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2. Do not Delay the Purchase
You should not procrastinate the decision to buy a health plan just because you are not able to find the perfect plan, there is never one. You cannot get the best of everything. It is not possible to not have any disadvantages in your plan. So, invest in a better plan without wasting time since the younger you are, the lower the premium. This is one of the best ways to save money on health insurance premiums.
3. Buy a long Tenure Policy
Companies provide a discount rate of 7.5-15% on long-term contracts. There are high chances that your health premium increases on account of health inflations. Establishments and corporations can consult the IRDAI and increase your premium.
4. Always Check on Discounts Available
(a) Loyalty Insurance- if you are already a customer of that company in terms of another policy, say motor policy, you could get some discounts on your health insurance as well. Research well.
(b) Standing Instruction Discount- if your premium is auto deducted in the future, companies give you a discount in the range of 2.5-5%.
(c) Medical Practitioner’s Discount- if you are someone working in the medical field, you get certain discounts because of your profession.
5. Look for Deductible and Co-payment Options in Your Policy
Deductibles are provided once a year, i.e., annually. Example- HDFC ERGO Secure Policy gives a 25% overall discount on an amount of INR 25,000 deductible. Co-payment option is feasible only if you are under corporate cover.
6. Buy Top Up Plans to Increase Your Coverage
They come at very low prices and enhance your base sum insured. With these, you can get higher coverage at lower premiums. So, top up health insurance plans can be that unconventional route to save money.
7. Don’t Choose Features That are Not Required
Some policies have inbuilt features that are already covered in your premium. For example, maternity benefits. Do not pay a higher premium on unnecessary coverage benefits.
8. Don’t Choose Unnecessary Add-ons
You will be provided with certain riders in your health policy like critical illness rider, personal accidental rider, hospital cash benefit, and so on. Critically analyse which riders are important to you and which are not. Every rider has its own cost so in case of duplicity or if certain riders are not required, remove such add-ons.
Read more - 5 Add-On Covers With Parent’s Health Insurance
9. Choose Family Floater Plans
If you have a family, do not go for individual insurance. Family floater health insurance plans give a combined cover for your whole family at a lower premium cost as compared to every member’s individual plans.
Read more - How Do Health Insurance Costs Get Affected by Family Size?
10. Pan-India and Zonal Policies
Pan-India policies have the same premium price for all and you can avail of the policy for a hospital at any place in India. Whereas zonal policies are divided into tier-1, tier-2 and tier-3, and all have different premium costs, tier-1 being the highest. But you can avail this policy only in your tier zone and not at any place in India. So, choose wisely.
11. Select for Increase in Sum Assured Rather Than No Claim
Companies provide an option of providing you a bonus for each year you make no-claim. Instead of this bonus, you should choose an increase in the sum insured as it takes care of the inflation in the market and provides you with an optimal insurance amount in future.
