8 Do's And Don’ts Of Saving Money On Your Health Insurance Policy
- Author :
- TATA AIG Team
- Published on :
A health insurance policy is an indispensable part of every individual’s life. As you age, there is no way you can deny the physical disorders that afflict your lives. While most people today have accepted the imperativeness of health insurance, they are not sure of the terms and conditions that these policies carry. As a result, there is a lack of comprehension and uninformed decision-making.
Another factor causing many people to avoid the purchase of health insurance is its affordability. For some individuals, a medical insurance policy may not fit into their budget. But there are ways in which you can buy a cost-effective health plan.
Before we discover the different ways to lower your health insurance bill, let us understand what this insurance plan covers.
What is Health Insurance Policy?
A health insurance policy in India is a product that covers you against the expenses that you may incur due to a wide range of health-related expenses. These expenses can be the result of minor illnesses, injuries, and critical diseases. Thus, a medical insurance plan and the sum insured acts as a safety net for when you may face a major medical expense.
Health insurance plans come with several features and benefits. The benefits of health insurance include maternity cover, pre and post-hospitalization cover, cashless claims, ambulance cover, no claim bonus, no co-pay, and more. Additionally, you must know that it is a tax-saving plan.
How to Save Money on Your Health Insurance Policy
1.Compare Health Insurance policies to find lower-cost options
If you search online, you will find numerous general insurance companies offering health insurance policies in India. Additionally, a single health insurance provider will also offer plans with varying coverages to suit varying budgets. For instance, Tata AIG offers the MediCare line of health insurance plans that offer varied covers to suit your budget and insurance needs.
So, make sure you compare the different plans available along with their pricing. However, remember to look for cost-effective plans that offer the most value for your money rather than the cheapest health insurance cover.
2. Start early
Health insurance premiums are dependent on the policyholder’s age. If you buy the policy at a younger age, you will have to pay a lower premium. With growing age, the chances of suffering from diseases and illnesses increase. Consequently, the cost of insurance increases and the eligibility sharply declines. Thus, start as early as you can when it comes to buying a health insurance policy in India.
3. Opt for a long term cover
When you buy a policy for a longer tenure, like two to three years, you get attractive premium discounts. This is an effective way to enjoy savings and uninterrupted coverage. A long-term cover doesn’t require renewal.
4. Buy basic hospitalization cover
If affordability is a concern and specialized health insurance like critical illness insurance is out of your budget, try to focus on buying only hospitalization cover. This feature acts as a security blanket for you and your loved ones against medical expenses arising from any injury or sudden illness. The cost of basic covers is less. Thus, you can save on the premium costs.
Nevertheless, do check the network of hospitals the policy takes into consideration. If your policy provides cashless hospitalization, you do not have to file medical insurance claims since the hospital and the insurance company settle the bills directly. Tata AIG offers a wide network of more than 7200 cashless hospitals with our MediCare line of insurance plans.
5. Buy top-up plans to increase cover
Some employees get employer insurance or have individual health insurance. However, if you require a higher sum insured beyond these types of health insurance policies, do not take an additional policy. All you need to do is choose a top-up plan.
A top-up plan provides the extra cover you need without increasing the premium significantly. As a result, you can enjoy a higher sum insured with considerable savings on the premium. Tata AIG offers the MediCare Plus Super Top-Up Plan to allow the enhancement of health coverage at pocket-friendly prices.
A top-up is also a good idea for critical illness insurance. For example, if you have bought a basic hospitalization cover, you can add a speciality catastrophe cover depending on your requirement.
6. Choose a family floater health insurance plan
A family floater health insurance plan is better than an individual health plan. A family floater plan allows you to include many family members under the same health insurance policy. There is a single premium, and the sum insured is divided amongst all the individuals covered in the plan. As a result, you get mediclaim for all members of your family at an affordable premium.
Generally, a family floater plan is suitable for protecting a family of four, comprising self, spouse, dependent children, and dependent parents.
7. Ensure cumulative bonus
If you renew your claim-free health policy on time, you can enjoy the benefits of a cumulative bonus. It means you can pay the same premium and get an extra sum insured. But if you take a fresh coverage, the premium will increase.
Tata AIG MediCare Premier health insurance offers a cumulative bonus on policy renewal. The cumulative bonus increases your sum assured by 50% of the base premium for every claim-free year. However, the limit is capped at 100% of the base sum assured.
For instance, you purchased a MediCare Premier plan with a sum assured of ₹5,00,000. You did not file a claim in the first year, so upon renewal, you got a cumulative bonus of ₹2,50,000 (50% of 5,00,000), taking your sum assured to ₹7,50,000. Now, if you did not file a claim again, you will get a further cumulative bonus of ₹2,50,000, taking your total sum assured to ₹10,00,000. Now, your sum assured will not go up further, as this amount entails a 100% increase in the base sum assured of ₹5,00,000.
8. Only choose coverage features that are needed
The coverage offered in the health insurance plan changes its premium. When you choose a health plan, make sure you carefully read the coverage features it offers. If there are any features that you do not require, talk to your insurance company about removing the same. There is no point in paying a higher premium for unnecessary coverage benefits.
As mentioned, Tata AIG offers the MediCare line of health plans with 3 different variants. You can compare the features and extent of coverage offered by each and choose the one that matches your unique needs and budget. Apart from the guidelines shared above, an efficient way to save on healthcare expenses and policy premiums is by maintaining good health. It includes quitting bad habits and becoming healthier. For example, if you are overweight, it is a good idea to start watching what you eat and get into the habit of exercising. If you quit smoking, it will reduce the frequency of visiting a doctor and can reduce health cover costs dramatically.
9. Avail of Tax Benefits
Your health insurance policy enables you to claim a deduction of up to ₹25,000 every financial year on the health insurance premiums towards a policy that covers you, your spouse and your children, under Section 80D of the Income Tax Act, 1961. You can also claim a deduction of up to ₹50,000 if you pay for the health cover availed of by either of your parents who are above the age of 60 years (senior citizens). You can also save tax of up to ₹25,000 (below 60 years of age) or ₹30,000 (above 60 years of age) during the policy term on the preventive health checkup expenses by claiming up to ₹5,000 each year.
By following the above-mentioned dos and don’ts, you can purchase the ideal health insurance policy that meets your requirements and guarantees a sturdy fiscal backup during emergencies.
Tata AIG Health Insurance has several excellent features that make it a suitable choice for the health insurance requirements of many. Discover the wide variety of health plans to know the benefits you can avail of with each one of them.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.