How to save money on health insurance

A health insurance plan has become a necessity in today’s age when medical costs are soaring. Imagine being hospitalised for any illness and a bill amounting to tens of thousands staring at you when you are discharged! Wouldn’t the bill threaten to wipe out your savings?

Read more why health insurance is a necessity

It would and that is why people are increasing insuring themselves under a health insurance plan. However, when it comes to premiums, many feel the pocket pinch. What if I told you that you can save money on your health insurance premiums? Wouldn’t it be good news?

Well, it is good news because health insurance plans allow you to lower the premium outgo. Do you know how? Let’s find out –

Buying young

Your age determines the premium that you would be charged under a health plan. When you are young you are relatively free of health complications. That is why premiums for younger ages are lower than premiums for older ages. So, if you want to reduce your health insurance premium outgo, buy a plan when you are young.

Here is why health insurance should be bought early.

Look for the available discounts

Health insurance plans offer discounts which lower your premiums. For instance, if you cover two or more family members under the same plan, you can earn a premium discount. Similarly, if you choose to buy the policy online, discounts are available. So, look for the available discounts in a health insurance plan. Utilize these discounts and save money.

Choose coverage features wisely

Health insurance plans, nowadays, have become quite comprehensive. They offer a wide variety of coverage features which make your plan an all-inclusive one. However, when buying, you should look for features which are required by you. Don’t choose features which are not required. For instance, if you have kids and are not planning for any more children, maternity coverage would be useless. The higher the coverage features the higher would be the premium charged. So, cut down on the frills and go basic.

Choose a higher tenure

Health plans are, nowadays, offering you continuous coverage for 2 and 3 years instead of one year. You have to pay the two-year or three-year premium at once and coverage would continue for the chosen tenure without having to do annual renewals. Besides being convenient, longer tenure plans also save on the premium cost. Health plans offer a premium discount ranging from 5% to 15% for choosing a higher tenure.

Use your accumulated No Claim Bonus

This tip is relevant for those of you who already have a health insurance plan. Many plans allow you a premium discount in the renewal premium if you don’t make a claim in a policy year. This is called a No Claim Bonus. So, if your plan also allows your premium discounts for not making a claim, grab those discounts and save money on renewal premiums.

Maintain your health

Ever heard the saying – Health is Wealth? Well, for health insurance plans, this saying is true quite literally. If you are healthy, your premiums are lower compared to premiums charged from individuals who have a health ailment. So, you can save money by being healthy. Moreover, under certain plans, there are specially designed health trackers which monitor your health and allow premium discounts if you lead a healthy life. So, if you want to save on the premium cost, maintain your health.

Use the health insurance tax saving benefits to the fullest

Health insurance premiums are allowed as tax deduction from your taxable income under Section 80D of the Income Tax Act. If you pay premiums for yourself and your family, you get a maximum deduction limit of up to Rs.25, 000. If you also pay premiums for a separate health policy for your parents, another deduction of up to Rs.25, 000 is allowed. These deductions increase to Rs.30, 000 if you and/or your parents are senior citizens (above 60 years of age.). Thus, you can claim a maximum deduction of up to Rs.60, 000 through health insurance premiums.

So, you can definitely save money on health insurance through the above-mentioned tips. The next time you are buying or renewing a health insurance plan, be sure to use these cost-saving ideas and lower your premiums.

Read also An anatomy of an health insurance plan

Read more about Dejargonizing health insurance terms

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