Want to Buy Health Insurance with Small Premium?

Mr. Verma is a 30-year-old man and has a family of four including his wife, his son and father. He was advised to buy health coverage for all, but he is a salaried employee with limited budget at his disposal to pay premiums. He was obviously confused as to which health insurance plan to invest in so that he got all possible benefits at a miniscule cost. Would you like to know what he did to achieve this nearly impossible looking target?

A few things that Mr. Verma was suggested to do and he successfully implemented them:

1. Family Floater Policy

Since Mr. Verma is quite young, he was advised to buy a family floater plan that covers the entire family under one sum assured and premiums are paid as per the opted sum assured or health cover. The only exception to it was that he didn’t include his father in the plan as the oldest member’s age and pre-existing diseases determines the premiums and that makes it go higher. It was better to buy him a separate plan and still get maximum benefits at the lowest possible cost for the entire family.

2. Riders

Most health insurance plans come with additional riders like critical illness cover, accident policy, etc. that lead to rise in premiums. He was wise enough to go through those options, checked his family’s need for them at this stage of their lives and decided not to include those riders and kept his premium low.

3. Limiting Hospital Room Costs

Mr. Verma had the choice of either selecting a high-end hospital room or an economical budgeted room option in case he needed hospitalization in the future. It was smart enough on his part to choose the hospital rooms with low per day costs to keep premium in check. He needs medical care, not a 5-star hotel treatment, right?

4. Co-Payment

Since his entire family was fit and healthy, he decided to go for a higher co-payment factor in his health plan. This means that in case of a medical emergency, a part of the cost will be borne by him and the rest will be taken care of by the insurance company. Higher the co-pay factor, lower the premiums! This is because it lessens the financial liability of the insurer and they pass off the health insurance benefits to policyholders in the form of a discounted plan.

5. Factored Inflation

Mr. Verma didn’t buy a plan with sum assured on an arbitrary basis. He did his calculations based on the rate of inflation and gathered enough information to understand the rise in medical costs over the years. That’s why, he neither under-insured nor over-insured himself and kept his premium in check.

6. Healthy Lifestyle

Even though he is a healthy guy, he ensured to inculcate the habit of living a healthy life with his wife and son. The insurance companies offer attractive discounted premium rates for healthy, non-smoking, non-drinking individuals.

7. Online Purchase

This was one of his masterstroke! Despite many insurance agents trying to woo him to buy health insurance plan from them, he decided to do his research online and finally buy a plan online himself. This saved him a lot of money on premiums because insurers don’t have to add the agents’ commission or other administrative costs in the premium if the customer is buying online health plan.

In case you’re also looking for health insurance benefits that don’t make a hole in your pocket, analyze your health needs accordingly and take health cover following the above-mentioned facts that will save some money. You can divert these saved funds towards other priorities even as your financial liabilities in regards to the health of your family are taken care of!

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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