How staying fit benefits your health as well as your health insurance premium

Benefits of fitness beyond healthy lifestyle

While the more visible effects of COVID-19 might be over, the world still continues to grapple with its aftermath. Prevention is better than cure ― this adage holds more true today than ever before, and preventive healthcare has a newfound relevance in the post-pandemic world. With the rise in new cases, COVID-19 seems far from over, and if our experience with the virus is anything to go by, preventive healthcare has become a crucial part of one’s well-being.

Though preventive healthcare measures are essential, they are not a guarantee of zero medical emergencies in the future. The extent of risks might fall, but the possibility of accidents, injuries, or sudden illness cannot be completely eliminated. Without health insurance, these can cause a significant financial burden in the event of unexpected medical costs. The insurance industry has taken cognizance of this fact, and is integrating preventive healthcare with health insurance to ensure overall wellness.

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The link between staying fit and health insurance

While maintaining a healthy lifestyle is beneficial in countless ways, one lesser-known, yet significant, benefit is the impact it can have on your health insurance premium. The link between fitness and health insurance premiums is straightforward. Health insurance companies base their premiums on a variety of factors, including age, pre-existing conditions, and lifestyle choices. The healthier the individual, the less likely the person will require costly medical treatments, resulting in lower risk for the insurance company. As a result, insurance companies offer benefits to those with a lower risk profile.

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Wellness benefits

It is not just the underwriting process that takes the policy-seeker’s physical fitness into account to offer lower premiums. Not many people know that even at the time of renewal, they can save up to 100 per cent of their premium by staying healthy. Yes, we are talking about wellness benefits.

Wellness benefits refer to programs and services designed by health insurance providers to promote overall health and well-being of policyholders by incentivising certain preventive healthcare activities. As per the directions of the Insurance Regulatory and Development Authority of India (IRDAI), health insurers give reward points to policyholders who adopt healthy behaviour and engage in physical activity, such as jogging, cycling, or exercising. Customers can use these reward points to pay their premiums at the time of renewal. These points can also be exchanged for savings on prescription costs, diagnostic fees, outpatient visits, and so on.

For instance, there are certain health insurance plans in the market that reward policyholders by offering up to 100 per cent discount on annual premium if they walk a certain number of steps (usually 10,000) every day during the policy year. Of course, the discounts vary depending on the extent of achieving the health goals as per the policy terms.

The daily physical activity of the policyholder can be monitored using smart-wear devices, or even by installing an app on their mobile phones. Apart from walking a certain number of steps, other parameters can also be taken into account like enrolling for a gym membership or taking a health assessment. These benefits are intended to support individuals in adopting healthy lifestyle behaviour and taking proactive measures to maintain good health. The idea behind wellness benefits is to reduce healthcare costs in the long run, which benefits both the insured as well as the insurer.

It pays to stay healthy

The key to success is to find a fitness routine that is enjoyable and sustainable in the long run. This may involve trying out different types of physical activity, such as dancing, swimming, or hiking, until you find one that you truly enjoy. It may also involve making small, incremental changes to your diet and lifestyle, rather than adopting a strict and restrictive eating plan.

So, the next time you consider skipping the gym or reaching for that unhealthy snack, remember that your wallet (and your body) will thank you for making healthy choices.