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How Low Health Insurance Premium Rates Can Benefit You?

By Vikas Chandra Das
14 November 2022, 4:04 PM

There’s great merit to this adage — a penny saved is a penny earned. While we earnestly try to make a pool of savings in any way possible, health insurance is worth considering for the same. Even though most people hesitate to buy a plan as its returns are not apparent like other investments, health insurance does support your financial savings. It comes in handy in a medical emergency when high costs of hospitalisation and treatments can upset your finances. Moreover, good coverage will ensure you can afford treatment at a reputable hospital and from experts. Also, if you compare health insurance and buy the one with a lower premium rate, you will enjoy many benefits. Read on to know how.

Lower Premiums are More Attractive

The premium rate is the first thing that comes to mind when one hears about health insurance because a good policy can take up a sizable portion of the budget. For salaried or self-employed individuals, this can upset the entire month’s plans. So, everyone seeks a practical and cheap cover. Moreover, who doesn’t like getting more for less? If one wants a lower premium, they must get a plan when still young, as the policyholder’s age and the sum insured determine the premium. The bigger the coverage, the higher the amount. But, this does not mean one cannot get more comprehensive coverage for a lower premium. 

One can save enough on the premium if they choose co-payment, deductible clause, raise no health insurance claims in a year, choose a multi-year plan, and buy the policy online as online health insurance offers attractive discounts. 

Benefits of a Low Premium Rate

Here’s how a lower premium will benefit you:

More Savings

The most apparent advantage of a lower health insurance premium is the money you save. Most families have a monthly budget and need to cut corners or make compromises to avoid stretching it. A lower premium will save one all this trouble. 

Let Your Next Premium Pay for Itself

If you get discounts, redeem reward points, or buy a family floater plan that costs less than multiple individual policies, you may manage to save enough money to pay for one policy year. This will be like the premium paying for itself, as your bank balance remains intact. 

Afford Top-up, Multiple Policies or Add-ons

If you’re on a budget, a low premium will allow you to buy a top-up, an additional policy or health insurance add-ons/riders to get better coverage at the same amount as one policy. You can ensure that you get high-quality treatment and safeguard yourself financially from exorbitant medical expenses if you, unfortunately, contract a critical illness. The same will apply to your loved one if you have family floater health insurance. Many insurers provide various unique disease-specific policies. 

For Treatments That Do Not Require Hospitalisation

Most health insurance plans only provide coverage if you are hospitalised for at least 24 hours. However, some treatments, such as viral fever, dental procedures and physiotherapy, do not require a hospital stay but can be costly. Insurers also have exclusions such as mental illnesses, and you may need to pay for the treatment from your savings. If you opt for a policy with a lower premium rate, you can use the amount for doctor’s fees, psychotherapy or other day procedures that the insurer may not cover. 

Easier to Pay a Monthly Amount

Almost every insurer allows the customer to pay the premium in monthly, quarterly or half-yearly instalments. If you have a lower premium and opt for a monthly EMI, the amount will be too small to affect your budget. 

Chance to Earn No Claim Bonus (NCB)

Not all hospitalisations result in significant expenses. For example, an overnight stay to bring blood pressure under control or for saline may not be too costly. If you have the money and pay the hospital bill without claiming it from the insurer, they may increase your sum insured or offer a discount on the base premium at the time of health insurance renewal.

Non-medical Expenses

Insurers usually do not cover or reimburse non-medical expenses such as commutes, food, medication, or supplies. You can use the money in your kitty for that. 

Save Up for Other Requirements

You can do many things with the amount you will save on premium. A short getaway with your family, invest that amount elsewhere and enhance your savings, or keep some money in safe reserve for a rainy day — the COVID-19 pandemic reintroduced one to the virtue of savings. Or it can also help you in the repayment of any loan. You can use the saved amount to pay for a few EMIs. 


You must make amends and buy health insurance if the high premium rate deters you. Many policies with lower premiums provide high coverage. If you research thoroughly and get a suitable plan, you can utilise the money you will save to buy another policy, a top-up plan, riders or a disease-specific plan. You can also use this amount for treatments that insurers do not cover or for day procedures and miscellaneous expenses. 


1. What is a co-payment clause?

Co-payment is an arrangement where the policyholder pays only a small portion of the medical expenses on their own, and the insurer takes care of the rest. 

2. How does co-payment help lower the premium?

Since the odds of a healthy person needing hospitalisation are less, they can choose a co-payment plan. Due to a lower sum insured, it has a lesser premium amount. The policyholder may only need to pay 10% of the expenses if hospitalised, though this depends on the policy. 

3. What is a deductible clause?

A deductible amount is a sum that the policyholder pays before the insurer starts paying for the claim raised. The insurance provider pays only when the policyholder’s deductible amount is exhausted. 

4. When should one buy health insurance to get lower premium rates?

The insurer will charge you a lower premium if you are fit, have a healthy lifestyle and have no family medical history. Buy a policy when you land your first job so you will be secured right away, and the waiting period will mostly be over before an emergency arises. 

5. Is it beneficial to buy maternity cover?

Yes. A maternity cover will pay for the delivery and related expenses. Still, many insurers also cover the newborn and even pay for the first year’s vaccinations, which will help you save costs. 

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