How to bring down your health insurance premium without compromising on coverage

An effective way to make your health insurance more affordable is to consider enhancing your health plan with a top-up or a super top-up plan.

As healthcare expenses continue to climb steeply along with the rising incidence of lifestyle diseases, health insurance can no longer be viewed as a choice.

As per a study on lifestyle diseases backed by the Indian Council of Medical Research (ICMR), around 35 percent of Indians suffer from hypertension, 10 percent have diabetes and 28 percent have high cholesterol levels. To top it off, the emergence of new viruses and diseases can unpredictably raise your medical bills.

So, it is fair to say that financial preparedness for medical emergencies is more essential than ever. Fortunately, medical science is advancing rapidly with even robotic surgery and gene editing as possible avenues.

However, the course of treatment might not be well within the reach of everyone considering the costs. While most people these days understand the importance of health insurance, the thought of affording a comprehensive health insurance policy for themselves and their families may seem daunting.

The good news is that there are many effective strategies that can help one bring down their premiums without compromising on coverage:

Buy early, save more

One of the best and most effective ways to reduce your health insurance premiums is to buy the health insurance plan at a young age when you are healthy. It is rightly said that the best time to buy insurance was yesterday. The second-best day is today. Your premium is based on your age and health condition.

The younger and healthier you are, the lower the risk for the insurer. This is the reason that for the same coverage, a 25-year-old purchasing health insurance pays a significantly lower amount of money compared to someone buying the same coverage at 40.

Over the long term, the savings can be substantial. The added benefit of buying early is that you can complete your waiting period for any pre-existing conditions sooner.

Network hospitals and bed-sharing

Opting for treatment at network hospitals can significantly reduce health insurance premiums, often by around 15 percent. This not only makes hospitalisation more affordable but also reduces out-of-pocket expenses for policyholders.

Also, there are plans available that allow policyholders to choose multi-bed sharing which further brings down the premium.

Also read | More money in your hands after Budget 2025? Use the tax-savings wisely to boost your investments, not spends

Convert premium into EMIs

It may seem difficult to pay the entire premium upfront. But instead of compromising on coverage by opting for a cheaper plan, you may consider the EMI option, which is offered by many insurers. For instance, if you purchase an insurance plan that costs Rs 20,000 per year, you can opt for monthly payments which may come to just Rs 1,600, less than the cost of an outing with the family.

By opting for EMIs, you can go for a more comprehensive plan, which may have been otherwise felt out of reach.

Keep an eye on your CIBIL score

Does your CIBIL score impact your insurance premiums? While it may surprise you, it does. Many new-age insurers offer you discounts on premiums if you have a high CIBIL score. This is because a higher score indicates that you are financially stable, making you a lower-risk customer. It is estimated that good financial history can help you reduce your insurance premium by up to 15 percent.

Also read | ULIP with annual premiums of over Rs 2.5 lakh to be taxed like equity MFs. Here’s what it means for policyholders

Consider super top-up plans

Another effective way to make your health insurance more affordable is to consider enhancing your health plan with a top-up or a super top-up plan. This can enhance your coverage without you having to opt for a higher base sum insured. These plans come with a threshold limit.

If your medical bills exceed that limit, then these plans kick in and provide you coverage over and above it. So if your base policy covers you for Rs 10 lakh and you choose a super top-up plan of Rs 90 lakh, you essentially have a coverage of Rs 1 crore.

Consider deductibles and co-payment options

While this is not the most preferred option and should be used only if necessary, opting for deductibles and co-payment clauses can help you bring down the health insurance premium substantially.

However, it means that you will have to share the medical expense burden with the insurer. You have to pay a fixed amount from your own pocket before the insurance coverage starts. On the other hand, in the case of a co-payment option, you would need to pay a certain percentage of the claim amount.

Go digital

Last, but not the least, buying health insurance online is also a great way to save money since this route eliminates intermediaries and additional charges. This means lower premiums. Plus, you can compare policies effortlessly online, ensuring you get the best-suited plan at the most competitive rate.

For most middle-class families, affordability is an important factor. However, the cost of the policy should not stop you from getting the insurance plan that is perfect for your requirements. You can get the most value for your money by making informed choices. After all, reducing health insurance premiums doesn’t mean compromising on coverage.

The writer is Business Head, Health Insurance at Policybazaar.com

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.