Eight Health Insurance Tips that Can Save Your Money

Healthcare expenses eat away a major portion of your take-home pay and savings, which is why it is necessary to have a health insurance plan in place. The cost you incur on buying a health policy somewhat increases your expenditure, considering the high premiums, add-ons and others. Read further to know health insurance tips that will help you save money.

  

Buying health insurance is a must in the view of the rapidly rising healthcare costs. Many people refrain from investing in a health plan as it adds to overall monthly expenses. This can be addressed more smartly by following the below mentioned health insurance tips. The health insurance tips and tricks will not only help you save money, but also help you pick a suitable cover.

  

1. Employer’s Insurance: The topmost tip of saving money on health insurance is to use the plan offered by your organisation. These are employers or group health insurance policies where you do not have to contribute any penny for premiums. Usually, the plan covers you and your family (spouse and children), except for your parents. This is the best way of saving money on premiums.
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3. Start early: The earlier you purchase a health plan, the more cost-effective it is. Ideally, when you start investing in a plan at a young age, the health issues are less, the age factor also reduces the premium rate, and you have an advantage over premium payment. There is a direct relationship between age and premium. So, as age increases, the premium rates also go up.
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5. Compare Policies To Find Low-Cost Options: You can opt for a low-cost health insurance option by comparing quotes offered by different health insurers online. Often, a health policy's cost becomes high when you purchase it through an agent, which charges a commission fee. If you buy a plan through online sources, you save some money on commission.
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7. Take Basic Hospitalization Cover: This is also one of the best tips for buying health insurance policy. If a plan seems out of your budget, you should buy at least a basic hospitalisation cover to secure the health of your loved ones. Basic covers usually cost less plus it helps you to save money on premiums. Before investing in such a cover, evaluate the prevailing healthcare cost in your city/town.
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9. Opt for a floater policy: One way to save money on health insurance is to purchase a family floater plan instead of a separate individual policy. The premiums for family plans are affordable as the sum assured is distributed depending on the age group and you get a host of benefits.
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11. Take advantage of cumulative bonus: Cumulative bonus is a monetary benefit you get as an insured person if you do not file any claim. The bonus which is credit at the time of renewal increases the sum assured amount and you continue to pay the same premium rate, thus saving money on a health insurance policy.
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13. Take Separate Cover For Parents: If your family floater health insurance covers parents, spouse and children, you will end up paying a higher premium. This is because the premium rate is calculated on the age of the eldest person. So, to save on the health plan, you can buy a separate policy covering your parents.
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15. Inculcate Healthy Habits: Here’s another way to save money on health insurance by making yourself fit and inculcating health habits such as quitting smoking or losing weight. This will cut the health insurance coverage cost to some extent.