2066 ViewsHealth insurance is no longer “nice to have.” It is a necessity. Medical costs continue to rise, and even a short hospital stay can disturb monthly finances. Yet, many people delay buying a policy or choose the bare minimum because premiums feel expensive.
The good news is this. Health insurance is not something that should burden your pocket. The correct knowledge and some intelligent decisions make it possible to maintain premiums without reducing the necessary coverage.
What is Health Insurance?
Health insurance is a financial safety net which assists in covering the medical costs which may occur due to illness, accidents or hospitalisation. You make payment to the insurer in specified sums known as a premium, and in exchange, the insurer will cover approved healthcare expenses according to the policy requirements.
Health insurance is based on a simple promise. You remain safeguarded against huge medical bills that are unforeseen. A policy can cover the hospital room rent and surgery expenses, as well as doctor fees and medicines.
The benefits in most plans extend beyond hospitalisation. These could involve day-care processes, pre- and post-hospitalisation costs, and even preventive health check-ups. The specific scope would be determined by the policy adopted.
In brief, health insurance is concerned with peace of mind. The policy takes care of the financial aspect, and you take care of your recovery.
What is a Health Insurance Premium?
A health insurance premium is the charge levied by the insurer, against which they offer financial coverage under a health insurance policy. This is a fee you have to pay on an annual basis to continue enjoying uninterrupted medical insurance coverage. The premium you have to pay typically depends on factors like your age, medical history, etc., and may or may not increase based on your chosen policy.
Compared to the coverage offered under even the most affordable and reasonable health insurance plans, the sum insured amount is usually significantly higher. For instance, you may have opted for a low-cost insurance plan by paying a premium ranging from a few thousand rupees. In return, your insurance provider may offer coverage worth lakhs, sometimes crores of rupees.
Ways to Lower Premiums and Get the Most Affordable Health Insurance Plans
Affordable premiums are not about cutting corners. They are about making informed choices.
The following are some of the ways in which you can get low-premium health insurance plans:
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Purchase the Health Insurance Policy at an Early Age
One of the most effective ways to get cheap health care insurance premiums is to start early. Insurance companies generally charge lower premiums if you purchase policies in your 20s. As you age, the risk associated with health issues increases, making policies more expensive. By securing a health insurance plan early in life, you not only save on premiums but also gain long-term financial security.
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Compare Insurance Policies
Before buying insurance, it is essential to compare policies from different providers. Different companies offer various coverage options, with varying premium costs. You must therefore take the time to research and compare policies, considering factors like coverage, network hospitals, and customer reviews. This way, you can find the best affordable insurance plans at reasonable rates.
| Did You Know? In 2021, a whopping 514 million people across India were covered under health insurance schemes. This number still accounts for only 37% of the country’s population. |
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Go for a Policy with a Lower Sum Insured
While policies with significant sums insured offer extensive coverage, the premium charges levied against them also tend to be significantly high. So, an option to make healthcare affordable is to choose a policy with a lower sum insured. You can especially consider this option if you belong to a family with no severe medical history.
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Opt for Deductibles
A deductible is the amount you must pay before your insurance ccoveragekicks in, and choosing a higher deductible translates to lower premiums. Deductibles may be voluntary or compulsory. You can also adjust the deductible limit in case it is voluntary. Going for a higher deductible makes sense if you are less prone to falling ill or have no family history of medical complications.
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Balance Your Health Insurance Plans
Some policies offer coverage for a variety of medical services, including services that you may not need. So, you must check your health insurance plan and remove the covers you don’t need. By customizing your policy to your needs, you can reduce your premium without losing out on essential coverage benefits, thus making healthcare affordable.
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Port Your Insurance Policy
If you feel the premiums charged by your insurer are too high, and if you can find more affordable health insurance plans with similar coverage being offered by another insurer, you can port your policy. If you choose to port, citing costs as your reason, your insurer may offer to match the premium charged by the other insurance provider. Plus, whether or not you port the policy, your benefits remain intact.
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Choose Top-Up and Super Top-up Plans:
Top-up and super top-up plans enable you to improve your existing health insurance coverage at extremely affordable rates. You can encash these plans only after exhausting your base health insurance policy with a lower sum insured. As such, these plans enable you to get significant coverage at an extremely low cost, thereby protecting you in case of long-term, expensive treatment courses.
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Use the Benefit of Co-Payment:
Co-payment is a health insurance clause under which you agree to pay a fixed percentage of the medical expenses, while your insurer pays the rest. Like deductibles, this clause may be optional. Choosing policies with a co-payment clause can reduce your premium significantly. A simple tactic is to opt for policies with the co-payment clause when you are younger and less likely to file claims. You can always modify your policy later as you age and remove the co-payment clause.
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Consider Buying Long-Term Health Insurance Plans:
Insurance providers also allow you to purchase long-term health insurance plans, with continuous coverage of 2-3 years at a time. Such policies make healthcare affordable since insurers typically offer discounts on premiums. Thus, even if the premium looks significant at face value, the cost of your health care plan, across the total insurance term, would typically be low with the added benefit of not having to renew your policy every year.
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Choose a Family Floater Plan:
A family floater policy is a type of insurance plan that covers 4-6 members of a family under a single plan with a single sum insured. It is one of the most cost-effective options for families. In such policies, the covered members must share the sum insured amount. You can also buy a top-up or super-top-up health insurance plan with your family floater policy to access affordable family medical insurance.
| Did You Know? Your health insurance policy offers coverage ranging from lakhs to crores of rupees. You can get such coverage under super top-up plans offered at extremely low costs. |
Premium-saving options at a glance:
| Cost-Saving Choice | How It Helps |
| Buying young |
Locks lower premiums for years |
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Family floater | One premium for multiple members |
| Deductibles |
Reduces insurer’s risk |
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Limited add-ons | Avoids extra costs |
| Healthy lifestyle | May earn lower pricing or rewards |
Small adjustments like these make a noticeable difference over time.
Factors That Increase Health Insurance Premiums
Premiums are not random numbers. They are calculated based on risk. The higher the perceived risk, the higher the premium. Understanding these factors helps you manage them better.
Age and Health Condition
Age plays a major role in premium calculation. As you grow older, the chances of illness increase. Insurers factor this in while pricing policies.
Health condition matters just as much. Someone with stable health and no major medical history is seen as a lower risk. This often results in lower premiums.
On the other hand, existing health issues, frequent doctor visits, or abnormal test results can push premiums upward. This is why early entry into health insurance is so important.
Pre-Existing Diseases
Pre-existing diseases increase the insurer’s responsibility from day one. Conditions like diabetes, blood pressure, asthma, or thyroid disorders fall into this category.
Policies covering such conditions may come with:
- Higher premiums
- Waiting periods before claims are allowed
- Specific exclusions or sub-limits
While you cannot change your medical history, timely disclosure is essential. Hiding conditions may lead to claim rejection later, which costs far more than a higher premium.
Lifestyle Habits
Your daily habits speak volumes to insurers. Smoking, excessive alcohol consumption, and lack of physical activity are considered high-risk behaviours.
These habits increase the likelihood of long-term health issues. Naturally, premiums reflect that risk.
Healthy habits work in your favour. Regular exercise, a balanced diet, and preventive check-ups may not always reduce premiums immediately, but they help maintain insurability over time.
Type of Coverage Selected
The broader the coverage, the higher the premium. Policies with extensive benefits come at a cost.
Factors that influence pricing include:
- High room rent limits
- Maternity and newborn cover
- Global treatment options
- Critical illness riders
- No sub-limits on treatments
Choosing a comprehensive plan is helpful, but only if the features match your needs. Paying for benefits you may never use unnecessarily increases premiums.
Claim History
Claim history affects renewals. Frequent claims indicate higher usage of the policy. Insurers may respond by increasing premiums at renewal or reducing certain benefits.
No-claim periods often work in your favour. Many policies reward this with discounts or cumulative bonuses that increase coverage without raising premiums.
Maintaining a balance is key. Use insurance when needed, but avoid making claims for minor expenses if you can manage them yourself.
FAQs
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How can I reduce my health insurance premium?
Reducing premiums starts with choosing the right policy. Buy early, opt for family floaters, and avoid unnecessary add-ons. Selecting a voluntary deductible can also lower costs if you are financially prepared.
Keeping a healthy lifestyle and maintaining a good claim record helps in the long run. Reviewing your policy at renewal ensures you are not overpaying for features you no longer need.
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Does buying health insurance early help lower premiums?
Yes, absolutely. Buying health insurance at a younger age usually means lower premiums. Younger individuals are seen as lower risk, and this is reflected in pricing.
Early purchase also helps you complete waiting periods sooner. This ensures broader coverage when you actually need it later in life.
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Is a higher deductible a good way to reduce premiums?
A higher deductible can reduce premiums significantly. It means you agree to pay a fixed amount before the insurer steps in.
This option works best if you have emergency savings and do not expect frequent hospital visits. For people with predictable medical needs, high deductibles may not be ideal.
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Do premiums increase every year?
Premiums do not always increase annually, but they may change due to age slabs, medical inflation, or claim history. Insurers may revise base pricing as well.
Regular reviews help you understand whether the increase is justified. Staying informed keeps surprises at bay.
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Are long-term health insurance plans cheaper than annual plans?
Long-term plans often offer cost advantages. Insurers may provide discounts when you pay premiums for two or three years at once.
They also protect you from yearly price revisions during the policy term. While the upfront payment is higher, overall costs may be lower across the coverage period.