How to Reduce Your Health Insurance Premium?

13 Tips to Reduce Premium of Your Health Insurance Premiums

Here are 13 easy tips to lower the premium of your health insurance policy:

1. Purchase a Policy at a Younger Age

   Purchasing health insurance at a younger age usually means lower premiums. When you are young and healthy, health insurance companies see you as a lower risk since you have lesser chances of developing a disease or medical condition. Since you are a lower liability for the insurance company, they offer you more affordable premium rates. In fact, buying a mediclaim insurance plan early also helps you complete the waiting periods before you may need to file a claim, ensuring your coverage is ready when you need it the most.

2. Buy a Family Floater Plan

   Instead of buying separate mediclaim policies for each member of your family, you must consider buying a family floater health insurance plan. This type of plan will cover all family members under a single policy on a floater basis, with an assumption that all insured members will not get sick at the same time. As a result, family health insurance plans are more affordable than buying individual plans for each family member.

3. Choose a Policy with a Low Sum Insured

   If you opt for a policy with a low sum insured, your health insurance premium will be reduced significantly. The sum insured is the maximum amount your insurer will pay for medical expenses during the policy period. The lower is the sum insured, the lower will be the premium. However, make sure the coverage amount is sufficient to cover all your healthcare needs.

4. Quit Smoking

   If you are a smoker, one thing you can do to save on your health insurance premium is to quit smoking. People who smoke are always at risk of developing diseases like lung cancer. As a result, chain smokers end up paying more premiums than non-smokers. So, you have to quit smoking as soon as possible to reduce your mediclaim insurance premium.

5. Maintain Good Health & Lifestyle

   If you are in good health, your health insurance premium will automatically be lower than people with health problems. For instance, if you have high blood pressure, you will end up paying more for your mediclaim policy than people who lead a healthy lifestyle. This is because people with pre-existing illnesses are more likely to file a claim than healthy ones.

6. Avoid Filing Minor Claims

   Most health insurance companies in India offer rewards, such as the No Claim Bonus (NCB), for not filing any claims in the previous policy year. NCB is a discount that can reduce your mediclaim insurance premium at the time of policy renewal. The longer you do not raise a claim, the higher will be your NCB percentage. Therefore, you must refrain from filing minor health insurance claims to build your NCB and lower your premiums. 

7. Opt for Essential Coverage Only

   The premium of your health insurance plan depends on its coverage. This implies the wider is the coverage, the higher your medical insurance premium will be. Therefore, make sure to choose a policy with the coverage you need to avoid paying hefty premiums.

8. Take Advantage of Wellness Benefits

   Most health insurance companies offer wellness benefits, such as free annual check-ups, fitness discounts, etc., for maintaining healthy habits. You can earn fitness discounts on renewal premiums by achieving the targets set by your insurance company. Doing so not only helps you to manage your health better but also reduces your mediclaim insurance premium.

9. Select the Co-payment or Deductible Option

   Another way to reduce your health insurance premium is by selecting the co-payment or deductible option. Co-payment means you agree to pay a portion of the claim amount out-of-pocket, while deductibles are fixed amounts you pay before the insurer covers the rest of the healthcare expenses. Choosing a higher co-payment or deductible in health insurance reduces your premium since the insurer's liability decreases.

10. Consider Buying Top-up Plans

    A top-up insurance plan provides additional coverage in case your base mediclaim policy has been exhausted. Since they come with a mandatory deductible, top-up plans are more affordable than buying a regular health plan. So, instead of opting for a high-cost comprehensive plan, you can combine a base health insurance policy with a top-up plan to enhance your coverage affordably. 

11. Invest in a Long-Term Mediclaim Policy

    Most insurance providers offer health insurance discounts if you purchase a policy for a tenure of 2 or 3 years. A multi-year health policy not only locks in your premium rate for the entire tenure but also provides peace of mind, knowing your coverage is secured for an extended period.

12. Purchase Health Insurance Online

    Buying health insurance online is often more affordable than purchasing through agents or offline channels. This is because online platforms eliminate intermediary costs and reduce administrative costs. Moreover, you get a discount on buying a mediclaim policy online. Additionally, comparing policies online helps you find affordable plans that match your needs.

13. Compare Different Health Insurance Plans

    Another way to lower your health insurance premiums is by comparing multiple plans online on websites like Policybazaar.com. With plenty of options available in the market, it is imperative for you to compare the benefits of various health insurance plans and pick a plan that best fits your needs and budget.