Health Insurance Premium: You can reduce your health insurance premium without compromising on coverage.
In the present times, with the increase in dangerous diseases, the expenses incurred during their treatment are also increasing drastically. Therefore, health insurance has become a necessity in the present times.
According to the Indian Council of Medical Research (ICMR), about 35 percent of Indians suffer from hypertension and 10 percent from diabetes, while 28 percent are struggling with high cholesterol levels.
Meanwhile, new viruses or diseases can worsen this situation. Therefore, health insurance can prove to be an effective way to protect against large medical bills. Meanwhile, the good news is that there are many effective strategies that can help reduce the premium without compromising on coverage.
Buy early and save more
Your premium is based on your age and health condition. Buying a health insurance plan at a young age is one of the best and most effective ways to reduce the premium. The younger and healthier you are, the lesser the risk for the insurance company.
This is why, for the same coverage, when a 25-year-old buys a health insurance policy, he pays a much lower amount than a 40-year-old. Apart from this, the added benefit of buying early is that you can complete your waiting period for any pre-existing conditions early.
Network hospitals and bed sharing
Getting treated at network hospitals can reduce the premium by about 15 per cent. Apart from this, schemes are also available that allow policyholders to opt for multi-bed sharing. This reduces the premium even further.
Convert the premium into EMIs
Paying the entire premium in advance can be costly. But instead of compromising on coverage by choosing a cheaper plan, you can consider the EMI option. This facility is offered by many insurance companies. For example, suppose you have purchased an insurance scheme whose premium is Rs 20,000 per year. In such a case, you can choose the option of monthly payment, which will be only Rs 1,600 per month. You can also buy a bigger scheme by choosing the option of EMIs.
Keep an eye on CIBIL score
You will be surprised to know, but your CIBIL score affects the premium. Many companies offer discounts on premium if you have a good CIBIL score. Actually, a better score indicates that you are financially strong, making you a low-risk customer. During this time, a good financial history can help reduce the premium by up to 15 percent.
Consider super top-up plans
Top-up or super top-up plans are one of the effective ways to make health insurance more affordable. This allows you to increase your coverage without having to opt for a very high sum assured. These schemes come with a limit. If your medical bills exceed that limit, these plans work and give you more coverage than that. For example, if your base policy gives you a coverage of Rs 10 lakh and you opt for a super top-up plan of Rs 90 lakh, you will essentially have a coverage of Rs 1 crore.
Consider deductible and co-payment options
Choosing deductible and co-payment options can help you reduce the premium to a great extent. However, this is not the most preferred option and should be used only when needed. However, it means that you will have to share the medical expenses with the insurance company.
You will have to pay a certain amount from your pocket before the insurance coverage starts. On the other hand, in case of co-payment options, you will have to pay a certain percentage of the claimed amount.
Buy online
Buying health insurance online is also a great way to save money as it eliminates middlemen and extra charges. This also impacts the premium. Apart from this, you can easily compare policies online, which increases the chances of getting a good scheme at a lesser price.
