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How to Save on your Health Insurance Premium?

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Higher coverage is better with rising healthcare costs, but higher coverage will also result in higher premiums for the policy.

How to reduce cost of your Health Insurance Premium
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Having health insurance helps individuals avoid out-of-pocket hospitalization expenses during a medical emergency. More coverage is better when healthcare expenses are on the rise, but it also means that one will end up paying higher insurance premiums.

Saving on plan premiums can be achieved in a number of ways.

These 5 tips will help you lower your health insurance premiums:

1. Take advantage of tax benefits if applicable

Tax Benefit

The Income Tax Act 1961 allows individuals to claim a tax benefit under Section 80D for purchasing medical insurance policies. The section allows policyholders under 60 years of age to claim deductions of up to Rs. 25,000 on their premiums.

This amount, however, rises significantly as the number of policyholders increases. The deduction increases to Rs. 50,000 for policyholders below 60 years of age if their family and parents are included in the policy.

Moreover, if their parents are senior citizens, the amount increases to Rs. 75,000. Furthermore, if the policyholder himself or herself is above 60 years of age, their family members and octogenarian parents are covered under it, they can receive up to Rs.1 lakh in deductions.

In spite of this, it should be noted that tax benefits can differ depending on a policy’s premium.

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2. No-Claim Bonus Benefits

No Claim Bonus

Insurance companies often offer their customers a No Claim Bonus (NCB) in an effort to encourage them to stay healthy and renew their policies before they expire.

When an individual does not make a claim for their policy during a year, they are eligible for a No Claim Bonus, which is usually paid as a reduced premium at renewal.

On renewal, policyholders can save a substantial amount. To keep claiming this benefit, you must renew the policy before it expires.

3. Adopting a healthy lifestyle

Healthy food

Insurance providers carefully consider the insured person’s lifestyle when determining a health insurance premium. Chronic diseases are more likely to occur if the policyholder leads an unhealthy lifestyle.

Those who maintain a healthy lifestyle are considered less prone to life-threatening diseases by insurers, and they will charge a comparatively lower premium. Hence, to get a reduced premium, it becomes essential to maintain a robust and healthy lifestyle.

4. Keeping Unnecessary Riders out of the Cart

No to Extra Riders

It is highly beneficial to policyholders to have riders as they provide additional coverage over and above their standard policies. They are particularly helpful in case of an emergency.

Before selecting an add-on cover, individuals should ensure it is not included in the basic coverage. The basic plan of some insurance companies includes critical illness coverage.

Therefore, individuals should avoid purchasing the same policy again as a rider, which would otherwise increase the premiums unnecessarily. In addition, some covers are only applicable to certain individuals. In the case of a male insured, maternity coverage wouldn’t be beneficial.

Thus, policyholders should not purchase such unnecessary add-ons in order to reduce their policy premiums. It is always possible to add a rider to a plan when renewing it.

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5. Buying the policy at an early age

Buy at a early age

Critical diseases are more likely to strike with increasing age. It is more common for individuals aged 60 and older to develop critical illnesses. Policyholders who are in their advanced stages of life are charged a higher premium by insurers for these reasons.

As a result, individuals who wish to purchase medical insurance policies can do so at a younger age and pay a much lower premium for the same policy. To cover their urgent financial need, individuals should choose a policy wisely. In order to make the right decision, they can consider factors such as policy coverage and type, network hospitals, sum insured, claim settlement ratio, and waiting period.

From the Policy Bazaar online portal, you can click here on Buy Now and select a health insurance plan that suits your medical needs.

Using these simple methods, policyholders can effectively reduce their health insurance premiums and save money.

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