Having health insurance has become inevitable owing to skyrocketing rates of healthcare. However, what causes apprehension amongst policy-seekers is the premium cost of the insurance policy.
The lower you pay, the lower coverage you will receive as the premium costs are non-negotiable. In the case of budget restraint, there are a few tips that can help in lowering the premium.
Purchase medical insurance when you are young
Policy providers consider the age and medical history of the policy-seeker. The number of renewal premiums increases as one moves towards a higher age band. Age-related ailments can also spike the cost of the premiums, thus when you are young you are unlikely to suffer from any of these which would mean cheaper premiums.
Opt for a policy with less sum insured
Opting for a policy with lower sum assurance means lower costs of premiums. By doing this, you start at a lower sum insured and then increase the amount as time passes by. This would make the policy more affordable.
Opt for voluntary copayments and deductibles
It is the amount over and above the compulsory deductible. The policyholders decide this optional amount at the time of buying or renewing the health insurance. Opting a high voluntary co-payment during your youth makes you eligible for discount rates on your premium rates. For example, opting a co-payment at 20% generally attracts a discount of 10%-15% on premiums.
Purchase the policy online
It has been observed that a policy that is purchased online is cheaper than the same policy purchased offline. The possibility of availing a 10%-20% discount on premiums is greater when one makes a policy purchase through online medium. The main reason behind this is, the insurers do not have to pay commission to the agents in virtual space online and offline medium.
Opt for a longer period
Not only does a longer policy term offer you coverage for a longer duration, it can enable you to avail discounts on your premium. Health insurance policies are generally renewed every year, however, there are a few policies offering a term of 2 or 3 years. Such policies offer a discount of 5% to 15% on the premium rates.
Opt for family floater plans
The premium rates are lower in family floater health insurance plans in comparison to the individual schemes. This is because the overall cost is divided amongst all the insured members. Including your spouse or kids in the scheme can help you avail a discount of around 10% to 20% on the premium rates.
Remember to check if the insurer offers No Claim Bonus (NCB) on your policy. Insurers offer NCB if there were zero claims made in the previous year. This assists you in getting extra coverage without paying additional premium.
Health insurance is vital, but it is also very important to be alert and keep a check on the features and rates of the policy that you take. Buying a policy when you are young and healthy can be highly beneficial.
Compare various policies and their premium rates, along with the NCB offered by the insurance company. Keep undertaking voluntary co-payments and top-ups to reduce the cost of the premium. Lastly, ensuring your entire family can be of great benefit, both for your pocket and the safety of your family.