How can you reduce the Health Insurance costs?

With the rising cost of healthcare and access to better medical facilities in India, the cost of health insurance or Mediclaim is also rising.

The treatment cost of a illness can be far more than the Mediclaim premiums as well.

Expenses saved in health insurance can be re-invested in assets that can help you meet your long term financial objectives.

Ways to reduce your Health Insurance Costs

Start at an young age

The premium of a Mediclaim plan depends on the age of the insured. With increasing age, health risks also increase causing the Mediclaim premiums to be significantly higher.

Avail no-claim bonuses

You are entitled to a no-claim bonus (NCB) from certain health insurance plans, if you don't make a claim during a policy year.

You should check if your plan offers such a bonus.

Opt for two-year Mediclaim policies

Most health insurers offer two-year Mediclaim policies.

The premium rates of two-year policies are lower than the premium rates of one-year policies.

Opting for co-pay plans

In a co-pay option the insured agrees to pay a percentage of the health insurance claim, anywhere in the range of 10-25%.

If you opt for co-pay, then your Mediclaim premium will be lower.

If you opt for 20% co-pay then your premium can be lower by up to 20%. So you stand to gain if there is no hospitali-sation in the policy term.

However, if there is a hospitalisation then you have to pay your co-pay amount, thereby incurring higher expenses.

If you are young and healthy with no medical conditions, you should opt for co-pay because you will save on the cost of Mediclaim premiums.

Over a period of time, this cost saving can be quite substantial.

However, if you are a senior citizen with known medical conditions, you should not opt for co-pay.

The cost of hospitalisation for a serious illness can be quite huge, and the co-payment amount will also be quite substantial.

Opting for family floater plansIf you have dependents, opt for family floater plan.

In this type of plan, the entire family is covered for the amount decreasing the per person premium compared to individual plans.

Since the probability of all your family members getting hospitalised in the same year is low, it makes more sense to buy a family floater plan.

Use top ups to increase your Mediclaim coverIf your current cover is not enough, buy a top-up of the additional cover required by you, instead of a new plan.

This will significantly reduce the cost of your Mediclaim premiums.

Or consider a super top-up instead

A super top-up is an improved version of top-up policies available at certain insurance companies wherein all claims are cumulated within a policy year.

The advantage with super top-up plan is that it takes care of expenses over and above the ones covered by your existing plan.

Since it provides additional coverage at a relatively lower cost, it is always beneficial to take a super top-up plan.

The annual premium to be paid here is also very less as compared to a top-up plan or a high sum assured health policy as the deductible is higher. Moreover, super top-up plans need not be taken from the same insurer as your base policy.

Compare Mediclaim plans before buying

Health Insurance plans have a wide range of premiums, limits and features.

If you buy your policy without adequate research and comparing with other policies, you may end up buying an expensive policy or a policy that is not best suited for your needs.

Get in touch with us to know more.

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