Tips to make your health insurance affordable without missing out on coverage

The surge in medical costs and lifestyle diseases has turned health insurance into an essential shield that stands between you and financial vulnerability. A single hospital bill can wipe out years of savings and the rampant medical inflation can make a routine procedure weigh heavily on household budgets. While having health insurance is necessary, so is finding a plan that fits into your budget. 

So how do you get a health policy that covers you adequately but also suits your pocket? Opting for a health insurance plan with a lower premium might seem like a smarter move but it could also mean compromising on coverage and making the plan ineffective when you need it the most. The good news? There are quite a few ways to strike this balance:

Pay in smaller, manageable installments: Your premium doesn’t have to be an annual amount that you need to pay upfront. Insurers now offer monthly EMI options to ease the burden off policyholders by allowing them to spread out their premium payments over time. In fact, there are flexible EMI options that come at little to no additional cost. Let’s say a plan costs Rs 20,000 annually, it will come down to around Rs 1500-1600 in monthly mode of payment. This is especially useful for people looking for affordable coverage in Tier 2 & 3 cities.

Smart use of voluntary deductibles: Choosing a deductible can bring down the insurance cost if done wisely. A deductible is the amount a policyholder agrees to pay from his own pocket in case of a claim, in return for a discount on their premium. The greater the deductible, the higher the discount. If you decide to opt for a Rs 20,000 deductible, you might get a discount of up to 20%. But you should note that suppose a claim of Rs 4 lakhs arises, you will need to shell out Rs 20,000 first out of pocket and then the insurer steps in to cover the remaining amount. While this is a good strategy to keep your premiums down, remember not to go overboard and opt only for an amount which you can arrange upfront at the time of a claim. 

Stay healthy, pay less, or not all!: Did you know you can get up to a 100% discount on your health insurance renewal? The condition? You maintain a healthy lifestyle, stay fit and meet the insurer’s criteria to be eligible for the discount. Many insurers offer wellness rewards and discounts on premiums if policyholders can achieve this milestone. A win-win for both the insurance company and the policyholder, this is the best way to keep your health and your premiums in check.

The early bird gets a lower premium for life: A great move to keep premiums low is to buy health insurance early when you are young. The younger you are, the lower the risk of developing health issues which makes you eligible for lower premiums. Insurers consider younger individuals less likely to file claims leading to more affordable coverage. Some policies even allow you to lock in your entry age. Suppose you enrolled at 25 years of age, so you’ll always pay the premium rates that apply to a 25-year-old at the time of your renewal.

Make the best of preferred network hospitals: Opt for treatment at hospitals within an insurer’s preferred network which can reduce health insurance premiums up to 15%. Insurers pass on the cost benefits of their hospital partnerships to policyholders. Also, opting multi-bed sharing room options lowers the premium by 40-50% as compared to regular plans. These measures offer greater financial flexibility while ensuring adequate healthcare coverage.

Opt for super top-ups: Combining a base policy with a super top-up is another smart move to make health insurance affordable. A base policy covers regular medical expenses. The super top-up gets activated once the hospital bill crosses the aggregate threshold limit. This approach offers comprehensive coverage at an affordable cost vis a vis buying a single policy with an expensive premium. 

Maintain a good CIBIL score: Insurers companies also consider reduced premium costs based on a good CIBIL score. If you clear outstanding debt timely, pay bills regularly and manage finances appropriately, you can achieve a better CIBIL score. This will further lower the cost of health insurance to make it more affordable without compromising essential coverage.

Family floater plan can aid in cost savings: A family floater health insurance plan can be a cost-effective alternative for families as compared to buying individual policies. Instead of purchasing separate plans for each member, a floater plan provides a shared sum insured that any family member can use. Since premiums are calculated based on the age of the insured members, younger families can particularly benefit from lower costs while ensuring adequate coverage under a single policy.

Choosing affordable health insurance need not be a difficult process. Opt for a policy wisely, and use these tips while making a decision that secures both your health and your finances.

(The author is Head, Health Insurance, Policybazaar.com)