Health insurance has become a necessity today as diseases are increasing and treatment is becoming expensive. According to ICMR, a large number of Indians suffer from high BP, diabetes and high cholesterol. New viruses can also increase expenses. But with proper planning, the premium can be reduced.
In today’s time, health insurance has become a necessity, not an option. It is a necessity because lifestyle-related insured diseases are increasing rapidly and hospital expenses are skyrocketing. According to a study by the Indian Council of Medical Research (ICMR), about 35% Indians suffer from high blood pressure, 10% from diabetes and 28% from high cholesterol. Apart from this, the emergence of new viruses and insured diseases can further increase the expenses. In such a situation, if you have health insurance, you are financially prepared for any insured disease.
But did you know that you can reduce your health insurance premium without
compromising on coverage? This article will tell you some effective ways through which you can save money and get better coverage. Siddharth Singhal, Business Head of Policy Bazaar’s Health Insurance Wing, has written an article on Moneycontrol. We are bringing to you information based on his article.
Buy early, save more: The best time to buy health insurance is when you are young and healthy. Buying insurance at a young age results in lower premiums because insurance companies see less risk in your health. For example, a 25-year-old pays a lower premium than a 40-year-old. Also, buying insurance early allows you to skip the waiting period for pre-existing conditions.
Network hospitals and bed sharing: Getting treatment in network hospitals can reduce the premium by up to 15 per cent. This not only reduces the cost of hospitalisation but also reduces your out-of-pocket expenses. Apart from this, some plans have the option of multi-bed sharing, which further reduces the premium.
Convert premium to EMI: If paying the entire premium at once seems difficult, opt for EMI. For example, if your annual premium is ₹20,000, you can pay it at the rate of ₹1,600 per month. This option helps you choose a plan with better coverage.
Keep an eye on your CIBIL score: Did you know that your CIBIL score can impact your insurance premium? A good CIBIL score (750 or above) can get you up to 15% discount on your premium. This score reflects your financial stability, making insurance companies consider you a low-risk customer.
Consider a super top-up plan: Super top-up plans strengthen your existing insurance policy. These plans have a threshold limit. For example, if your base plan is Rs 10 lakh and you take a super top-up plan of Rs 90 lakh, your total coverage becomes Rs 1 crore. This option provides greater coverage without paying a higher premium.
Deductible and co-payment options: You can reduce the premium significantly by choosing deductible and co-payment options. In deductible, you have to pay a certain amount yourself, after which the insurance coverage starts. In co-payment, you bear a part of the claim amount (such as 10% or 20%) yourself. However, choose this option only if your financial position is strong.
Go digital: Buying insurance online is not only convenient, it also reduces the premium. On online platforms, you can compare different policies and choose the most affordable and suitable plan. This saves the cost of middlemen, which reduces the premium.
