All you need is strategic planning so you can save money while also ensuring sufficient health insurance coverage.
Health Insurance
Buying a family health insurance at an early age can help you lower the premium. Making use of cumulative bonuses and co-payment clauses can help reduce the cost significantly. Explore various other practical and effective tips to reduce your health insurance premium.
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The steadily climbing medical expenses have made health insurance a necessity rather than a luxury. When it comes to financial planning, health insurance plans have to be a part of the portfolio. It ensures you and your family are protected irrespective of the rising medical charges.
Undoubtedly, health insurance offers invaluable peace, but it also comes with a cost. In today's time of soaring inflation, managing health insurance expenses can be challenging for many households. Fortunately, various actionable tips can help you reduce health insurance costs. You need not always compromise on coverage to reduce the premium.
Smart planning and careful budgeting can help you get the desired family health insurance! Read on as we discuss some valuable tips on how you can get health insurance at low rates!
Practical Tips to Reduce Health Insurance Costs
Managing health insurance costs may not be as difficult as it seems. All you need is strategic planning so you can save money while also ensuring sufficient health insurance coverage. Here we have shared some practical tips that can help you cut the cost of health insurance plans:
1. Understand the Types of Health Insurance Plans
Health insurance plans are broadly classified into three categories. Each type serves different health insurance requirements. Understanding the different types of health insurance plans will help you pick the right one:
- Individual Health Insurance Plans:
Individual health insurance covers a single individual. Even when bought for a family, every member has a separate policy and sum insured. - Family Health Insurance Plans
Family health insurance covers the entire family under one policy. Typically, the policyholder, their spouse, parents, and up to two children are covered. The sum insured is shared among all the insured members. - Group Health Insurance Plans
Group health plans are typically offered by an employer to their employees. In some cases, the premium for a group health plan may be shared between the employer and the employee. These plans are purchased wholesale and offer affordable coverage.
2. Try Buying Health Insurance at an Early Age
Health insurance premiums are typically lower for young individuals. The older you get, the higher the premium. This is because young people are considered less prone to serious health conditions.
You must note that though you are never too late to buy a health insurance plan, waiting until you cross your 30s or 40s is not such a good idea. Since life is unpredictable, getting health insurance coverage at an early age is the best idea. It also helps you maintain consistency in your health plan, thus, lowering the premium.
3. You Can Prefer a Family Health Plan Over an Individual Plan
Family and individual health insurance plans serve different purposes. In a family floater plan, the sum insured is shared. Any insured member can use it until the sum is exhausted. Unlike an individual plan where every member has their sum insured. Therefore, a family health plan is less expensive than an individual plan.
So, for example, if you have a family of four, buying separate/ individual health plans will cost you way more than one family health insurance plan.
4. Choose Coverage Wisely
The sum insured by your chosen health insurance plan directly impacts the premium. So, it is essential to choose the coverage carefully. Going for an excessively high coverage will result in an inflated premium. Evaluate your family's health requirements and medical history, and set your budget to get affordable health insurance.
5. Stick to Clean Lifestyle Habits
Yes, the harms of smoking and drinking are not limited to your health but can impact your pocket as well. Health insurance companies have different terms and conditions for people who smoke. As a smoker, you will have to pay a higher premium for similar coverage than a non-smoker. So, the only best idea ever is to quit smoking as early as you can!
6. Pay Attention to the Co-Payment Clause
Co-payment refers to the portion of the health insurance claim that you, the policyholder, have to pay. Simply put, it is the share of the claim amount borne by the policyholder. The higher the co-payment you choose, the lower the premium and vice-versa. However, you must also note that a substantially higher co-payment will increase your share in the claim amount, thus affecting the compensation you receive. So, make sure to make a calculative decision!
7. Make the Most of Cumulative Bonus
Not just your family but even health insurers celebrate your good health! Cumulative bonus is offered to individuals or families who do not raise any claim in a policy year. You may utilise the benefit to get a premium discount at the time of renewing your policy.
Your health insurer can reward you with up to a 50% discount on health insurance premiums using a cumulative bonus.
8. Make Sure to Compare Before Buying
When you plan to purchase a health insurance plan, you come across various options. To choose the best one for you and your family, it is essential to compare the options. Based on your premium budget and preferences, you may shortlist a few health insurance plans. Now, pick the one that satisfies your health insurance needs. It helps you get the most value for your money!
9. Leverage Corporate Health Insurance Plans
Many employers offer group health insurance coverage to their employees, while some offer coverage to the immediate family too. You can leverage this coverage while purchasing a health insurance plan separately.
Although a corporate/ group health plan may sound picket-friendly, the coverage may not always be sufficient. So, it is advised that you purchase separate health insurance over and above this. In such a case, you may leverage and calculate the coverage of your policy and choose a sum insured accordingly.
10.Opt for a top-up or super top-up plan
A major hospitalisation or repeated claims in a policy year may exhaust the sum insured of your health insurance policy. In such a situation, it can be quite expensive to purchase a new policy or bear the medical expenses on your own.
However, if you purchase a top-up or super-top-up plan, you can extend the plan's coverage without spending much. Top-up and super-top-up plans activate when the base sum insured amount is exhausted.
To Wrap Up
Reducing health insurance costs doesn't have to be complicated and challenging. Making smart decisions can help you minimise the cost without much effort. Buying early is one of the essential factors. Along with this, you must calculate the medical requirements of your family to choose a practical sum insured amount that's not too high nor too low. Use the benefit of cumulative bonus and co-payment clause to further reduce the premium amount! Secure health insurance protection for your family without creating a financial burden. Start planning your finances today with smart choices!
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
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