1. Home
2. Blogs

How to Save on Family Health Insurance Premiums

• 
• 
• 
• 0
• 0

Today, health insurance has moved from being an option to being a necessity. With rising medical care costs, health insurance has become more essential than ever, yet people in India still think a hundred times before investing in a health insurance plan because they think it may add to their expenditure. The truth is, with smart planning coupled with the right choices, it goes on to bring you a comprehensive family health insurance plan with all the essential covers, yet not put a strain on your wallet. The key here is finding a middle road that will provide you with comprehensive enough coverage but keep that premium price low for family health insurance.

Importance of Family Insurance

When you think about the future, you want to make sure your loved ones are adequately protected against unexpected medical expenses. That is what family health insurance does. When you invest in a good family health insurance policy, you're not just buying a policy but peace of mind. Think of the stress related to unexpected hospitalisation. Without health insurance, that can be financially overwhelming. In family health insurance, you are allowed to cover everyone under one plan. This is not only convenient but often has a low premium for family health insurance. You do not need to worry about the individual policies for each member, and you can focus on the things that truly matter - your family's well-being. This way, you can ensure that everyone within your reach is protected without ripping your wallet apart.

Tips to save on your premium and still stay protected

As far as health insurance is concerned, saving on your premium while you and your family keep yourself well-covered should be the way to go. Here are some practical tips that can help you in keeping those costs low without affecting the coverage.

1. Start Early

Purchasing health insurance early in youth will considerably reduce the premium amount for an individual. The premium rates that most insurance companies charge are lower for young policyholders, while some specifically have discounts for early enrollment. For instance, if you buy health insurance in your 20s or early 30s, the premium will turn out to be much cheaper compared to purchasing the same plan later in life. Furthermore, if you maintain a healthy lifestyle and never file any claims, you will be entitled to no-claim bonuses, which further cut down the cost over time.

2. Leverage Tax Benefits

Remember, health insurance is one of the easiest ways to save tax. This is because of the deductions it attracts under Section 80D of the Income Tax Act. So, when your parents are senior citizens with a family health insurance policy, premiums can earn you tax deductions of up to ₹50,000. If you are paying for their health insurance, then this limit increases to ₹75,000. This not only reduces tax liability but also makes this premium more affordable, allowing you to maintain a low premium that is much easier for family health assurance plans.

3. Opt for a Family Floater Plan

There are family health insurance plans that cover the entire family. In the family floater plan, one can cover all members under a single policy; it generally includes a premium amount that will be lower in comparison to purchasing policies for individual members. For instance, if one is purchased in which you are included together with your spouse and children, the total premium will be less than buying separate health insurance plans for each. This is a great way of enjoying low premium payments for family health insurance while at the same time making sure that everyone is covered.

4. Go for a Higher Deductible

One of the more effective ways to reduce your premium is by opting for an increased deductible. The deductible is what you have agreed to pay out-of-pocket before the insurance pays for anything. By opting for a higher deductible, you bring down the premium costs significantly. This option works well in particular for people who are generally healthy and with no frequent medical visits expected. Just make sure you have enough in your savings to cover that deductible if it's needed.

5. Maintain a Healthy Lifestyle

When you diligently maintain your health and lifestyle, it can also bring down your health insurance premium. Most insurers have several wellness programs that execute and reward you with discounts on renewals or even direct cash-back offers for remaining fit. By taking part in regular check-ups, exercise, and other preventive measures, you can help yourself stay healthy and reduce the chances of claiming, thus keeping the premium low.

6. Consider a multiyear policy

Many insurance providers offer discounts if you purchase their policy for a longer time frame, say two or three years, as opposed to renewing it yearly. This will help bring down your premium payable over the tenure of the policy. In the case of the three-year health plan, you would get an additional 10 per cent discount on your premiums, which provides an easy way to lock in a low premium for family health insurance without raising premiums year after year.

7. Get Health Insurance Online

Buying health insurance online can enable you to save money in many ways. First of all, many online platforms charge much lower premiums due to the low administrative charges, but in addition to that, insurance companies may give special discounts for buying insurance online. For instance, many health insurance companies in India offer a discount of 5% if you buy the policy online.

8. Top-Up Plans

If you feel your health insurance is insufficient and you don't want to pay a high premium for it, opt for a top-up plan. Top-up plans cover over and above the threshold of your existing policy coverage. Mostly, these policies come at a price compared to increasing the sum insured by your base policy, making them pretty cost-effective in increasing your family's protection without inflating the premium.

9. Avoid Filing Minor Claims

Although one may be tempted to make every minor medical expense payable, it pays in the long run if you avoid these small claims. If you never file small claims, it helps in not disturbing your No-Claim Bonus, which will reduce the premium payable substantially over some time. Higher NCBs not only result in a reduction in premiums at renewal but also aid when switching insurers. This ensures a low premium amount and a sizeable sum insured for costly major medical emergencies.

10. Customise Your Coverage

Design an insurance health plan that best serves your needs. Go for the addition of only main products, such as maternity benefits or critical illness riders, which cover only what is necessary without extra features. That way, you will not pay for excessive coverage, hence reducing your premium. Customising your plan will ensure you are well protected without spending too much on your health insurance.

Conclusion

To wrap it up, getting a health insurance plan for your family does not necessarily need to burn your pockets. Getting on early with your insurance policy, choosing a family health insurance plan, avoiding small claims, and inculcating healthy habits will keep you close to the lowest premium for family health insurance. Of course, it is all about seeking a balance between good coverage and what you can afford so that your family is protected, but you are not unduly stressed about finances.

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

RELATED ARTICLES

6 Ways to Lower Your Individual Health Insurance Premium

Check Out 9 Tips to Save Money While Buying Health Insurance

Choose Health Insurance with Low Premiums and Save More on Taxes

What are the Benefits of a Family Health Insurance Plan?

Renewing Your Family Insurance Policy? Here Is Why You Need To Re-Evaluate Your Plan

---

• 
• 
• 
•