You and your colleague bought a health insurance policy together. But his health insurance premium amount was half yours, leaving you surprised. Let us tell you that many get such unpleasant surprises. However, there’s a reason for charging a higher insurance premium in your case. You might be in your late 30s while your colleague may be in his mid-20s. Age is one of the crucial factors determining the health insurance premium chart for individuals. Besides age, some other factors also influence the premium amount calculation. Let’s be briefed on the health insurance premium before checking out the factors.
What is a Health Insurance Premium?
Health insurance is a contract signed between the insurance company and the insured wherein the former indemnifies the latter for the financial losses caused to him/her in the wake of potential medical emergencies.
The insurance company or the insurer charges a premium from the insured in exchange for health risk coverage. As a policyholder, you can pay the premium yearly or get it converted into monthly installments. You can even pay the premium for a two or three-year policy in one go. These are called multi-year policies.
Showcasing Tips for a Lower Health Insurance Premium
Without any further delay, let’s check out the tips that help lower your health insurance premium amount.
Buy Health Insurance at an Early Age
Buying a health insurance policy at an early age is the mantra to get lower premiums. The premium is dependent on the age. It is believed that younger individuals are supposed to be healthier. Their chances of contracting a disease are much lower compared to older individuals.
However, keep in mind that the health insurance premium won’t remain constant throughout. It will increase after a specified period. Premiums rise after you migrate from one age slab to another. The health insurance premium age slab is typically a 5-year one.
However, don’t get the impression that the premium will rise after every five years. Suppose the premium for people aged 30-35 years for a given sum insured is INR 10,000. You bought the policy at 34 years of age, the premium will rise the following year as the age slab of 30-35 years will complete. The premium charged at that time will remain constant for the next five years.
Given the dynamics explained above, it’s worthwhile to buy health insurance at the earliest to curtail the premium amount while enjoying maximum coverage.
Healthy Habits Correspond to a Lower Premium Amount
Health insurance premiums are dependent on your lifestyle too. Living a healthy life and saying NO to alcohol and drug abuse is one of the ways to get health insurance at a steal. Alcohol and drug consumption can lead to poor health over time, leading to increased hospitalisation claims. Keeping in mind the possibility of frequent claims, the insurer will charge a greater premium.
But you may ask, how will the insurer know that you consume such substances assuming that you actually do? Well, you have to disclose every material fact to the insurer while filing the health insurance application form. If you don’t disclose true information, and you get hospitalised later, it will get found out in the medical investigation report at the time of a health insurance claim. The insurer might reject your claim on grounds of concealing the material facts.
Consider Buying a Multi-year Health Insurance Policy
Health insurance policies are generally taken by the insured for a year. Post the payment of premiums at that time, the policy will get renewed for one more year. However, you can buy health insurance for two or three years at the beginning or at the time of renewal.
These multi-year policy premiums may sound more in absolute numbers but are less on average. Suppose the 1-year health insurance premium amounts to INR 10,000. The 2-year policy premium will likely be INR 17,000. So, yearly, the premium falls to INR 8,500 (17,000/2).
The 3-year policy will attract an even lower premium. However, assess your affordability to pay a seemingly large amount in one short.
Buy a Family Floater Plan for a Lower Premium
Health insurance policies are generally of two types – individual and family floater. Individual plans will have a separate sum insured for each individual, resulting in a higher premium than a family floater plan where the sum assured is divided among family members. The age of the eldest member decides the premium amount of a family floater plan. The greater the age of the eldest member, the greater the premium and vice versa. So, don’t include your old-aged parents in the family floater plan, the premium may rise substantially. Have a separate health insurance policy for them.
Don’t Buy Unnecessary Riders
Health insurance benefits expand with the addition of riders to the base plan. The rider will increase your overall health insurance premium. But some riders may not be essential to have, especially when you are young.
For example, buying a critical illness rider may not be worth it at a young age. The chances of contracting diseases such as heart attack, liver cirrhosis, Parkinson’s disease and alike are lower in your 20s. Once you get into your late 40s, you can consider purchasing a critical illness rider.
Choose Plans That Offer Discounts on Health Insurance Premiums on Staying Fit
Some health insurance plans come with a health management program. The program usually entails certain health trends health-conscious people like you embrace. These include accomplishing 5,000 steps a day, keeping blood pressure and blood glucose at an optimum level, etc. Meeting such parameters successfully will result in a premium discount on renewal.
Compare Health Insurance Plans Online
Comparing health insurance plans online can also boost the possibility of grabbing a policy at a lower premium. You can check plans, their overall coverage and benefits and choose a deal that offers you more value for the health insurance premium you pay.
Can I Get a Health Insurance Premium Estimate?
Yes, you can! Use the health insurance premium calculator online to receive the same. Enter your age, plan type, health status, sum insured and other details that you see on the calculator to receive premium estimates online.
Wrapping Up
So, these were some tips for a lower health insurance premium. Implement the same in real time. While that holds, don’t compromise on health insurance coverage for the sake of lower premiums. Choose a policy offering you wider coverage for a premium you can easily afford.
Health insurance policies when bought with optimised features cover you holistically against health ailments. You don’t have to take a medical loan in that case, saving you years of interest payments.
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