Health Insurance policy premiums are an essential part of an urban India's budget. The rising premium rates are attributable to the growing healthcare inflation. A research report by Motilal Oswal pegged the medical inflation rate in India in 2021 as the highest at 14%. As a result, the cost of health insurance premiums and healthcare have skyrocketed in recent years. Thus, it makes good sense to know the kind of discounts offered by different service providers that will help beat down the cost of the premium. There are many ways by which you can get discounted on your health insurance premium.
Addition of Family Members
Many insurers provide a discount which may go up to 10-15% if two or more family members are covered under the same policy. Sometimes it may happen that you have made a claim against one of the family members insured during the year, and the balance is insufficient to cover a subsequent claim by any of the other family members covered during the same year. Today, many insurers offer to reset the sum insured up to 100% of the base sum.
Discounts on Multi-year Policies
Health insurance policies can be offered for more than a year too. What’s special is the premium discounts offered on a 2 or 3-year policy.
Reward Points and Wellness Incentives
Many insurers have seen a smart way to reduce the number of health insurance claims by promoting wellness among their clients. Thus, discounts are offered based on your lifestyle - the number of steps you take a day or the number of calories you burn through yoga, gym etc. The discount offered can be as high as 30%. Some plans offer two check-ups a year. An improvement in health between two check-ups can also reduce the premium amount in the following cycle. Some insurers also offer vouchers you may redeem at pharmacies or health centres if you are found to be healthy in any premium year.
Special Discounts for Women Policyholders
As part of the focus on women’s health and empowerment, many service providers offer special discounts to female policy members ranging from 5 to 10%. A family floater health insurance plan may also offer discounts which vary according to the number of females enrolled.
Choosing Deductibles Helps You Get Premium Discounts
A deductible is a portion of the healthcare costs you need to bear on your own. Once the costs exceed the deductible threshold, the insurer will pay the remaining cost up to the sum insured. Choosing deductibles help ensure discounts on your health insurance premiums. However, be careful that the deductible amount you choose is not high. In case of the opposite, you may end up paying a lot more than you may expect.
The Co-pay Option
A co-pay option is an option wherein you agree to pay a percentage of your claim while the insurer pays the rest. This may vary from 10% to 30%, depending on the health insurance provider. Taking this option could drive down your premium by as much as 10%. This could mean a significant reduction, especially if you have a large number of members that need medical insurance coverage
Conclusion
With increasing medical inflation, health insurance costs are set to rise. The uncomfortable strain on your budget due to medical insurance premiums could be reduced significantly if you choose your plan based on the recommendations made above. The combined benefits of discounts, along with those offered by tax benefits under Section 80D of the IT Act, could drive your premium costs down by as much as 30%. In addition, free medical check-up offers also reduce your annual health care costs.
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