As the cloud—or rather smog—of uncertainties looms over people across Indian cities owing to pollution and other health hazards, it is imperative not just to secure our health and also ensure financial stability. After all, as the saying goes, health is wealth. But due to a lack of awareness, many people make the mistake of dismissing the need for health insurance, replacing this necessity with mere hope.
Health insurance is a critical investment. However, it hardly means that it has to cost a bomb – most certainly not if you know some feasible ways to make it affordable without compromising on the protection quotient. While making an informed choice for health insurance, here are some practical tips to help you save up on premium without compromising on your essential needs.
Siddharth Singhal, Head, Health Insurance, Policybazaar.com says, “Compare health insurance plans and choose the right plan for yourself. Don’t settle for the first plan you see. Use online tools to evaluate prices, features and network hospitals. Remember, different insurers price the same risk differently. Keep an eye on your CIBIL score. Yes, you read that right. Your financial credibility plays a role here too. A high CIBIL score can fetch you discounts on premiums, as insurers consider you to be a lower-risk customer. A good financial history not only lowers your EMI payments but can also reduce your premiums by up to 15%.”
It’s quite possible to not be able to pay up the entire amount all at once. If paying the entire premium upfront is difficult, consider EMI options offered by many insurers.
New-age modular plans let you save up considerably by customizing your plan as per your needs. Consider opting for a deductible or copay. This means you’ll pay out-of-pocket during claims, but your premium will be lower. If you’re healthy and don’t foresee frequent hospital visits, this can be a cost-effective choice. It’s a smart way to save in the long term while staying prepared for unforeseen events. This makes sense to even senior citizens who might face higher premiums. Also, if you opt for a hospital in your insurer’s preferred partner network, you stand to save up to 15% in premiums.
Cumulative bonus lets you increase your sum insured even if you end up making a claim during the policy year. This is different from NCB or no claims bonus that rewards you for not making a claim. Over time, this can significantly enhance your coverage while keeping costs steady. Let’s say you have a sum insured of Rs 10 lakh and gain a 10% cumulative bonus every year. In 10 years, the cumulative bonus of Rs 10 lakh can potentially be accumulated and make the sum insured just double.
Purchasing health insurance early in life is a wise decision. Policies are cheaper when you’re younger and healthier, and you lock in your age for the future. Also, this is where something called wellness benefit kicks in. You stay healthy and fit, meet the insurer’s criteria and get up to 100% discount upon renewal. You can make the most of this feature if you opt for a plan early in life.