How to minimise health insurance expenses

Good health equips us with confidence to achieve personal and professional goals in life and take on challenges. On the flipside, chronic or occasional health issues have the potential to disrupt routine life and also take a toll on your psychological well-being.

One way to mitigate this is to have adequate health insurance, which provides monetary support during hospitalisation or treatment. It offers to pay for the medical expenses incurred in treating a specific health condition and comes at a premium. Having a health insurance is mandatory. You should get one for yourself and for everyone in your family. It is a must-have, not a discretionary expense.

Since spending on a health cover is an absolute necessity, let’s take a look at how we can bring down the associated expenses of maintaining a health cover.

First and foremost, buy young

It’s important to get health insurance early in life. Let’s demonstrate this need with a real life example. A quick online scan for insurance quotes would reveal that a health cover of Rs 5 lakh for a 25-year-old with no pre-existing diseases costs around Rs 5,000 only.

Try to buy the same cover when you are 45, and you’ll have to pay upwards of Rs 7,000. Also, as you age, the chances of your having a medical episode requiring hospitalisation increase. Once this episode takes place, not only will it be more difficult to buy a health cover, you may also have to pay a much higher premium.

Go online, and compare

Don’t jump at the first insurance quote that comes your way. You can go online to easily compare health insurance policies with parameters such as cost, benefits, room rent limits, co-pay limits, benefit restoration, ambulance coverage, pre-existing disease waiting period, and much more. You should pick a cover tailored to your needs, lifestyle and health condition.

Opt for family floater plan

There are cost benefits to group buying. If you’re not in a position to buy individual health covers for all members of your family, consider a family floater plan that would cover all your dependents under one plan, and help you save on premium costs. The policy benefits are shared between its members, typically up to the cover limit.

Use your group cover

Employers typically cover you under a group insurance plan. They also allow you to list your dependents under such plans. Make it a point to include all your dependents to your employer’s plan even if the value of the cover is modest. You could use it as your primary health cover in case of hospitalisation instead of spending from your personal cover.

However, your employer-provided cover should always be your secondary line of defence. Your stint with your employer may end at any point leaving you vulnerable if you don’t have your own cover.

NCB and bonus cover

Many health insurance providers offer you incentives for not using the cover during a year. The incentives may be in the form of NCB – no claim bonus – in which your next premium may be discounted.

The providers may also boost your total cover by a percentage in case of non-usage during a year. For example, you have a cover of Rs 10 lakh and do not use it during a year. Upon renewal of the policy, your cover may be increased to Rs 11 lakh at no extra cost to you.

Understand family medical history and genetic pre-disposition 

Perhaps, two of the most crucial aspects that not only help in curbing health-related expenses but also aid in staying away from health-related issues are studying your family history and genetic pre-disposition to certain diseases. You must go through the medical history of your lineal ascendants and immediate blood relatives to see what ailed them and at what point in their lives.

Diabetes, hypertension, heart problems and incidence of cancer, among other diseases, need to be checked. This may reveal your own genetic susceptibility to such diseases. Based on this examination, you could foresee your own medical problems, take early preventive measures, and go for regular health checks. Being in a strong, informed position would eventually help you plan and save on medical expense.

Optimise your lifestyle 

The lifestyle you lead also plays a crucial role in dictating future expenses incurred towards healthcare. Your personal and professional life, eating habits, travel, exercise regimen, alcohol and drug consumption and others should be analysed thoroughly and optimised.

Hypertension, cancer, and diabetes are some of the leading diseases directly related to lifestyle. Some of them also have a direct say in the premium paid towards health insurance.
Tweaking your lifestyle and letting go of some discretionary comforts is a small price to pay for ensuring good health and longevity.

Though there is a plethora of health insurance options available in the market today, not every plan may align with your personal health profile.

Here are some tips to sign up for the best one: 

If you are a smoker, the premium will be higher. Therefore, look out for plans that offer a high cover at low premiums.

Watch out for clauses such as exceptions and cap on coverage of an existing disease or ailment. Most insurance companies do not cover existing diseases for the first few years and have a waiting period. 

Opt for a cover that provides a lump sum in case of diagnosis of a critical illness so that monetary resources are not cut off, especially if you are the breadwinner.

Do not hesitate to purchase add-on covers if they help bring under the policy common ailments such as kidney failure and cancer, among others.

There are many such factors that go into signing up for a health cover for self and family.
Identify and analyse such influencers, and ensure protective health cover for your family for years to come.

(The writer is CEO of BankBazaar.com)