Ways to reduce costs and save on your health insurance premium: Startup

Health insurance helps individuals to stay covered during a medical emergency and avoid out-of-pocket hospitalisation expenses. With rising healthcare expenses, the more coverage one has is better but higher coverage also means that one will end up paying high premiums for their policy. Here are some ways that can help save substantially on plan premiums.

5 ways to reduce health insurance premiums:

1. Make sure to avail applicable tax benefits

Individuals purchasing medical insurance policies can claim a tax benefit under Section 80D of the Income Tax Act 1961. According to this section, if the age of a policyholder is less than 60 years, they are eligible for deductions of up to Rs. 25,000 on the premium.

However, this amount rises considerably with an increase in the number of people covered in the policy. For example, if policyholders below 60 years of age include their family and parents in the policy, the deduction will increase up to Rs. 50,000. Additionally, if their parents are senior citizens, the amount will rise to Rs. 75,000.

Furthermore, if the policyholder themselves are above 60 years of age, their families and octogenarian parents are covered under it, they can receive a deduction of up to Rs.1 lakh. However, it is essential to note that the tax benefit can vary with the premiums of a policy.

2. Benefiting from No Claim Bonus

No Claim Bonus (NCB) is an attractive benefit that insurers often provide their customers, encouraging them to stay healthy and renew their plans before expiry. If an individual hasn’t raised any claim for the policy during a year, they become eligible for a No Claim Bonus that is usually given by way of a reduced premium on renewal of the plan.

Policyholders can save a substantial amount on renewal. However, it is crucial to renew the policy before it expires to keep claiming this benefit.

3. Maintaining a healthy lifestyle

While deciding on a health insurance premium, insurance providers carefully assess the current lifestyle of the insured person. If the policyholder leads an unhealthy lifestyle, they become more prone to acute diseases.

If an individual maintains a healthy lifestyle, insurers can consider that he or she is less prone to life-threatening diseases and will charge a comparatively lower premium for the same plan. So, it becomes essential to maintain a robust & healthy lifestyle to get a reduced premium.

4. Avoiding the purchase of unnecessary riders

Riders are highly beneficial to policyholders as they provide enhanced coverage over and above their standard policies, and are especially useful during emergencies. However, before selecting an add-on cover, individuals must ensure that it is not included in the basic plan. For example, some insurance companies include critical illness cover under the basic plan. So, individuals need to avoid buying the same again as a rider, which would otherwise unnecessarily increase the cost of the premium.

Additionally, there are several covers that are only applicable to some specific individuals. For instance, a maternity cover would not be beneficial if the insured is male. Hence, policyholders should refrain from purchasing such unnecessary add-ons to reduce the premiums of their policy. One can always choose to add a rider to the plan at the time of renewal.

5. Purchasing the policy at an early age

With increasing age, the chance of getting affected with critical disease rises significantly. For instance, individuals at an age of 60 have a higher chance of developing critical illnesses. Due to these reasons, insurers charge a higher premium to the policyholders who are in the advanced stages of their life. Hence, individuals planning to purchase a medical insurance policy can do so at a younger age to get the same plan at a far lower premium.

Individuals should select the policy wisely to cover their urgent need for funds. They can consider factors such as policy coverage and type, network hospitals, sum insured, claim settlement ratio, and waiting period to make the right decision. You can click on Buy Now and choose a health insurance plan that suits your medical requirements from the Bajaj Finance Limited online portal.

By adopting these simple methods listed above, policyholders can effectively reduce their premiums and save on their health insurance policies.

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