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10 tips to save on health insurance premium

Team AckoApr 29, 2022

Medical expenses are unfortunately inevitable. Thus, it only makes sense to preemptively buy health insurance. Like all products, you may want your hard-earned money to be well spent. So, with that in mind, in this article, we will divulge 10 tips to save on health insurance premiums. Read ahead to find out what they are.

Tips To Save On Health Insurance Premium

1. Buy your health insurance online

Buying health insurance via the online mode is significantly more cost-effective than buying it offline. The reason for this is that online insurance bypasses the middlemen and the consequential costs. 

These savings reduce the premium charged for online health insurance plans. That is why we recommend that you opt for online health insurance to save costs on the premium.

Apart from affordable rates, opting for online insurance also gives the following benefits.

  • Ability to purchase health plans from anywhere and at anytime

  • You can directly buy from the insurer without interacting with any middlemen

  • The entire insurance experience is far more convenient than the offline alternative

2. Compare health insurance plans

The health insurance sector has grown many fold over the past few years. Consequently, there are a lot of health insurance options to choose from. Comparing the price and benefits offered under multiple health insurance plans will help you zero down on the best plan for you. This can be accomplished more efficiently in online health insurance, than in its offline counterpart.

Online health insurers usually provide a health insurance calculator to give you an estimate of how much a plan may cost. So, you can input all the coverages you need and the calculator will produce a free health insurance quote. Based on the comparison of quotations of multiple plans, you can choose one that adequately covers your needs and is easy on your pocket.

3. Buy health insurance as early as possible

It is a thumb rule in health insurance to buy insurance early on in life. Insurers usually offer health insurance at a lower price for youngsters. The reason for this is that as compared to the elderly, youngsters are less prone to incur severe illnesses and thus, may not raise many claims. So, rather than waiting till you become older, it is wise to buy insurance as early as possible to save costs.

4. Choose a plan with coverage for an extensive duration

Usually, health insurance plans have a policy period of approximately a year. Here, the policy period refers to the duration between the commencement and expiry date of a health plan. Usually, insurers may offer attractive discounts on medical plans that have a policy period of 2 to 3 years. 

Thus, the cumulative premium ends up being a lot less than renewing the plan every year. Since these plans span over a few years, they also consequently protect you against inflation. This further helps you save on your health insurance premium and serves as an additional incentive to opt for long-term plans.

5. Buy top-up plans to enhance coverage

The cost of availing of certain medical procedures can be rather steep. Nonetheless, buying a health insurance plan that covers huge medical costs is also usually expensive. The reason for this is, generally, the higher the sum insured, the higher the premium payable. 

Fortunately, you have the option of buying top-up and super top-up plans above your regular health insurance. These plans are cost-effective and help to significantly boost the sum insured. Thus, helping you to save costs on your health insurance premium. 

For example, if you buy a Rs. 5 lakh individual policy and Rs. 5 lakh top-up plan, it is likely to be cheaper than buying a Rs. 10 lakh individual policy.

6. Don’t choose unnecessary coverages

The premium charged under health insurance is usually proportional to the coverages you select. So, the more coverages you choose, the higher the premium you may have to pay. Thus, choose only the required add-ons while buying health insurance. That way you can prevent incurring additional costs.

7. Buy a family floater plan

The safety of our family members is important to us. Thus, it goes without saying that they need to be financially protected against medical costs under health insurance. However, buying individual health insurance plans for each family member can amount to a lot. 

Fortunately, if you opt for a family floater plan, you can avail coverage for your family members under a single plan. This will significantly reduce the money you spend on health insurance for your family and increase the scope of coverage of your plan.

8. Claim judiciously

As the name may suggest, a No Claim Bonus (NCB) refers to a reward given by insurers to customers who do not raise any claims during a policy term. The reward is usually granted in the form of an increase in the sum insured. So, if you want to save on health insurance premium, you should consider avoiding raising claims for minor medical expenses.

9. Balance GMC and individual policy

If you are a salaried employee, your company may offer you and your dependents a Group Medical Cover (GMC). If this is the case, instead of spending a lot on an individual plan, you can choose a plan that complements your employer’s health plan.

For example, you may have a health insurance requirement of around Rs. 10 lakh (sum insured). So, if your employer’s insurance covers you up to Rs. 5 lakh, you only need to buy an additional individual cover worth Rs. 5 lakh to meet your requirement. This way, you can save the premium that you would have paid to buy a Rs. 10 lakh individual plan by only paying for a Rs. 5 lakh individual plan, as the premium for the Rs. 5 lakh GMC is paid by the employer.

Nonetheless, it is important to note that your employer’s health plan will not be effective once you leave the organisation. So, be cautious of that when you are switching companies.

10. Maintain good health and enjoy great savings

Staying fit and healthy can lead to renewal discounts. For example, health insurers may ask customers to sync fitness tracking apps with their insurance app. So, if you cross 10,000 steps of walking or jogging daily, for a few months, it can translate to gaining a renewal discount as a reward for taking efforts to stay fit. So check with your insurer if such incentives are offered for keeping fit and enjoy the benefits of both good health and cost-saving.

To sum up

Availing adequate coverage under health insurance need not be an expensive affair. You can follow the aforementioned tips to avoid spending a lot on health insurance premiums. That way, you can save your hard-earned money and be protected against unexpected medical costs at the same time.

Frequently asked questions

The following are some common questions regarding saving on health insurance premiums.

Will porting health insurance plans reduce policy premiums?

Porting insurance may not reduce the policy premium payable. However, if you choose a new plan that has a lower policy premium and offers the same coverage, you may be able to enjoy the benefit of paying a lesser premium than your previous plan.

What coverages do I opt-out of under health insurance to save costs?

While buying health insurance, choose an adequate insurance plan and add-ons based on your requirements.

How do I go about comparing health insurance plans online?

Comparing plans may seem like a daunting task. But it’s actually not that hard if you know what parameters you are comparing. To help you out, below are some key criteria you can use to compare health insurance plans.

  • Premium charged

  • Sum insured

  • Co-payment clause

  • Sub-limits

  • Network hospitals of the insurer

  • Waiting period

  • Room rent clause

  • Day-care coverage

  • Cashless services

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CIN: U66000KA2016PLC138288

IRDAI Registration No: 157

Category: Non-Life Insurance

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