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Check Out 9 Tips to Save Money While Buying Health Insurance

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Published on February 2, 2022. EST READ TIME: 3 minutes

Even before the pandemic forced us to take extra care of our health, there was no dearth of life-threatening ailments. And who can ever predict an accident or illness? Hence, a comprehensive health insurance policy is super important. It helps us afford costly treatment during medical emergencies. But relying on the health plan provided by the employer can be tricky because of its inadequate coverage. Still, many continue to depend on that because they think a separate plan will cost them a fortune. And there are many others who refrain from investing in a health plan because it adds to the overall monthly expenses. That’s a misconception. While you can customise a plan according to your family’s health needs and budget, there are many ways in which you can save money on health plans themselves.

Tips to save money on health plans

1. Start early:

The premium of health insurance is directly proportional to the age of the policyholder. So, as you age, the premium also increases. The reason is simple – as we get older, we are more likely to develop health issues and become a risk for the insurance provider. So, it is best to buy a policy when you are young and healthy (with no or few health issues) so that you can save money on your premiums.

2. Maintain a healthy lifestyle:

For a health freak, the premium will be less compared to somebody who is a smoker or obese or suffers from a health condition. If you want to reduce your health insurance premium, maintain a healthy lifestyle by giving up bad habits like smoking, alcohol consumption, etc. Insurance providers usually give discount to people who don’t get hospitalised and are fit and healthy.

3. Take basic cover:

If you can’t afford a comprehensive health insurance plan, go for a basic cover which will protect you and your family against any medical emergency. Since basic covers cost less because of the limited coverage, your premium will also be less. However, before buying the basic cover, consider the healthcare costs in the place where you reside.

4. Go for a family floater plan:

If you want to buy insurance for the entire family, a family floater is more economical compared to individual health insurance plans.In family floater, the sum insured and policy benefits are shared by all the insured members, but you pay only a single premium amount. In case of individual health plans, you need to pay individual premiums for all the members of the family.

5. Cumulative bonus benefit:

If you don’t make any claims in a policy year, the insurer will give you a monetary benefit at the time of policy renewal. The cumulative bonus will increase your sum insured with no extra premium. This means, you will get a wider coverage at the same premium amount, thus saving money on your health insurance.

6. Take separate cover for your parents:

The premium of a family floater is based on the age of the eldest person in the family. If you include your elderly parents in the family floater, you will end up paying a higher premium. So, take a separate policy for your parents and your policy premium will be low.

7. Go for long-term plans:

This is another way of reducing your premium. Most insurance providers offer discount if you buy long-term cover of 2 years or 3 years. As the premium increases at the time of renewal taking into consideration the inflation rate, you can save money by going for long-term plans instead of annual plans.

8. Top-up cover is economical:

Do you already have a health plan but want to enhance the coverage? Go for a top-up plan rather than buying a separate policy with a higher sum insured.A plan with higher sum insured will mean high premium. But the top-up cover will provide additional protection over and above your regular plan at an affordable rate. However, remember, the top-up plan kicks in only after the sum insured of the base plan is exhausted.

9. Buy insurance online:

When you buy insurance online, you get 2 benefits. One, you can compare the quotes offered by different insurance providers online and get the best insurance plan as per your requirement at the best deal. There are many online sites that give detailed information on the covers offered by various insurance providers. Second, if you purchase it through an agent, you need to pay a commission. With online purchase, you can save some money on the commission fee of the agent.

Conclusion

As you can see, buying health insurance doesn’t mean you have to shell out a lot of money on its premium. It can be affordable as there are ways in which you can keep your premiums low. Hence, assess your health needs and choose the coverage accordingly. Do not opt for add-ons that are not useful for you as it will only increase your premium. Hope the above-mentioned points will help you in making an informed choice.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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