Doesn’t the prospect of discounts and bargains sound like music to your ears? It must. After all, who doesn’t like saving money? That is why we keep an eye out for offers and discounts, wait for the sale season and buy only after comparing between the available choices. When it comes to health insurance plans too, we look for ways to reduce the premium without compromising on the coverage. Is it possible to do so?
Actually it is. Since a health insurance plan takes care of your medical bills, having an optimal coverage amount is essential. Juxtaposed to the optimal coverage, the premiums should also be affordable. You can’t burn your pockets on a health insurance plan, can you? You can’t and that is why, here are 6 tips to reduce your health insurance premium:
Tip # 1 – choose a coverage based on your family’s health requirement
When you are choosing a health insurance plan it is imperative to consider the coverage requirements you and your family needs. Then you should look for such coverage features in potential health plans. Since the premium charged by a health insurance plan depends on the coverage it extends you should choose only the coverage features you need so that you do not pay additional premium for unnecessary coverage features. A very common example is the maternity coverage feature available in some health plans. If you already have kids and are not planning to have any more, a health plan with maternity coverage is unnecessary for you. So, assess your coverage needs and then opt for a health plan.
Tips # 2 – lead a healthy lifestyle
Your lifestyle determines your health. If you lead a healthy life you are less prone to ailments and diseases. This fact is recognized by many health insurance companies which offer special premium discounts if you maintain a healthy lifestyle. So, take out your running shoes, hit the gym, choose a balanced diet and enjoy premium discounts in your health insurance plan. Doesn’t this premium reducing way provide dual benefits? You can save your money and also become fitter and healthier. A win-win situation, don’t you think?
Tip # 3 – buy young
What, do you think, is the right age to buy a health insurance policy? Is it the 30s or the 40s? The fact is the younger you buy the better. Buying young has dual advantages. One, you can get a comprehensive coverage without restrictions. Two, you save on the premium costs. So, if you want to reduce your health insurance premiums, buy a policy when you are young.
Read more about Health insurance not an option any more but a necessity
Tip # 4 – utilize the 80D tax benefit optimally
The premiums which you pay for your health insurance plan are tax-free under Section 80D up to Rs.25, 000 (Rs.30, 000 if you are senior citizen). So, if you are in the 20% tax-bracket and your health insurance premium is Rs.20, 000, your effective premium would become Rs.20, 000 less the tax you save which is (20% of Rs.20, 000) amounting to Rs.16, 000. Moreover, if you pay the premiums for a policy of your parents, you can save an additional Rs.25, 000 (Rs.30, 000 if they are senior citizen) from your taxable income. So, utilize the provisions of Section 80D and save on your health insurance premiums.
Tip # 5 – look for discounts
Health insurance plans offer different types of premium discounts. For instance, if you buy the policy online you can get a discount. If you add 2 or more family members in the plan you can earn a discount. If you buy a 2 or 3 year policy, you can get a discount. So look for these premium discounts which lower your health insurance premiums.
Tip # 6 – compare before you buy
Do you know how many health insurance plans are available in the market? Too many to count! Every health insurance plan has different coverage options and is priced differently. That is why, comparison is very essential. Go online, look for available health insurance plans pertaining to your coverage requirements, compare the premium quotes and then buy the plan. When you compare you can get a plan which offers the best rate of premium and save money on the premium costs.
Simple tips which, when followed, help you to reduce your health insurance premium. There is no sale season in the health insurance market but these tips are sure-shot ways of reducing the premiums. So, remember these tips and save your hard-earned money.
Read also What is insurance and how does it works?
Read also An anatomy of an health insurance plan
Read about Dejargonizing health insurance terms
Also, check out our video below to know the 6 tips to reduce health insurance premium
Feel free to share your comments below