Health insurance is a safety net that shields you from unexpected medical expenses. But let’s face it—the premiums can feel like a burden on your budget. The good news? There are smart ways to reduce these costs without compromising on coverage.
A health insurance premium is the amount you pay to keep your policy active—whether monthly or annually. The cost depends on factors like your age, health history, and the type of coverage you choose. Leading insurance providers in India include HDFC Ergo, Aditya Birla Health Insurance, TATA AIG General, and ICICI Lombard, among others.
But here’s the catch: choosing the right policy is only half the game. Knowing how to manage your premiums smartly can save you a significant amount over time.
1. Increase deductibles: A deductible is the amount you agree to pay out of pocket before your insurer starts covering expenses. By slightly raising this amount, you can lower your premium while still keeping full coverage.
2. Buy early: The younger and healthier you are when you buy health insurance, the lower your premiums will be. So, don’t wait.
3. Opt for multi-year policies: Insurance companies often provide discounts when you choose a 2- or 3-year policy instead of renewing annually.
4. Maintain a no-claim bonus: If you don’t make any claims during the policy year, insurers usually reward you with discounts on future premiums. Staying healthy pays—literally.
5. Compare policies annually: Insurance terms and prices change frequently. Use online comparison tools to identify better deals suited to your needs. This way, you can avoid paying more than necessary.
6. Stay healthy: It might sound simple, but maintaining good health helps reduce insurance costs over time by minimising claims.
When selecting a policy, read all the documents carefully. Don’t shy away from asking questions. If certain add-ons, like maternity cover, aren’t relevant to you, skip them. Similarly, check co-payment clauses—this is where you agree to pay a portion of medical expenses. Adjust it based on what you can afford.
Insurance companies frequently revise their terms and pricing. What worked for you last year may not be the best fit now. By comparing plans annually, you can find better deals without compromising on coverage. Look for options tailored to your age, health history, and specific requirements.
Cutting health insurance premiums doesn’t have to mean cutting coverage. With strategies like increasing deductibles, leveraging no-claim bonuses, and comparing policies regularly, you can strike a balance between financial savings and comprehensive protection. Stay informed, stay insured—and keep those premiums in check.
(By arrangement with Livemint.com)
