Tips to choose the right health insurance policy with minimum premium

A study conducted by Public Health Foundation suggested that the high cost of medical care forced nearly 55 million Indians into poverty every year. However, expensive health care is not the only issue; the growing number of people suffering from lifestyle diseases is worrying too. More penetration of health insurance plans at an affordable rate can help mitigate the situation.

In India, health insurance companies determine the premium amount based on several factors, including age, medical history, lifestyle habits, and location. But there are specific steps that you can take to get full health coverage at an affordable premium.

Consider buying a family health insurance plan

A family floater, health insurance policy, allows you to cover all your family members under a single plan. It is an affordable way to provide cover to all, rather than buying an individual policy for each family member. This type of scheme is beneficial for families that have young members, as the chances of hospitalisation are low. Under a floater plan, you can provide coverage for your spouse, dependent children and parents.

Opt for a higher deductible

One of the best ways to lower your health insurance premium and yet be assured of getting full protection from your health insurance is to opt for a higher voluntary deductible. A deductible is an amount that you must pay from your pocket when you file for a claim. The higher the deductible, the lower will be your inusnrace premium.

Use No Claim Bonus (NCB)/commulative bonus

The insurance companies reward the policyholders with NCB/commulative bonus who do not file any claim during a policy year. It is an incentive given to the policyholders for discouraging excessive claim filings. When you do not file a claim, you can get an commulative bonus in terms of increased sum assured without an increase in the insurance premium. While buying a health insurance policy, you must ask the insurer if they offer NCB and the quantum of benefit.

Buy a long-term cover

Generally, the premium for health insurance plans is paid annually. However, some of the insurers give the policyholders the option to opt for a multi-year payment term. You can decrease the premium payment if you pay the premium for two or more years at once. Another significant benefit of opting for a long-term cover is that you need not monitor the payment schedule every year and be sure of getting protection against all your medical needs.

Buy Online

With the growing penetration of internet in India, most organisations across different sectors are taking the digital route to reach out to their potential audience. The insurance industry has been one of the early adopters of the digitalisation, and today most insurance companies allow the policyholder to buy their plans online.

The online insurance plans have lower administrative cost, and since you can buy the policies directly from the company, you do not need to pay insurance broker commission. This translates to a lower premium.

A lot of people prefer buying family health insurance plan with the lowest premium; however, the premium should not be the only factor to dictate your purchase decision. You must focus on getting adequate coverage to meet the medical needs of your family and choose a plan with an affordable premium. Also, before you sign the policy papers, make sure to read the terms carefully to know about the inclusions and exclusions to avoid any hassles while filing a claim.

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