99 per cent of the insurance companies in the health line of business are not able to make underwriting profit, according to insurance experts.
If you do not claim in a policy year, this increases your sum insured without having to change your premium payment
99 per cent of the insurance companies in the health line of business are not able to make underwriting profit, according to insurance experts.
“Unless we don't do something about this, we cannot bring in inclusion, we cannot provide insurance at affordable rates. It’s important to do something about this to raise awareness,” says S Prakash, health insurance evangelist. The Insurance Regulatory Development Authority of India (Irdai) has also warned insurers against high commission payouts.
Health insurance premiums are thus on the rise. Here are ways to keep your premiums under check.
Opt For A Higher Deductible With A Top-Up Plan
One of the best ways to lower your premiums would be to choose a high deductible in your base policy and then augment that with a top-up or super top-up plan that gives coverage above a predetermined amount, at a small fraction of the increase in cost of the base sum insured.
Leverage Family Floater Policies
When covering a family, a floater plan would be way more economical than an independent policy for each one of the family members. It assures all-around coverage, strikes the risk evenly, and therefore has a lower overall premium compared to keeping separate policies.
Maintain A Claim-Free Record For No-Claim Bonuses (NCB)
“Most insurance companies give a No-Claim Bonus (NCB) feature. If you do not claim in a policy year, this increases your sum insured without having to change your premium payment. With this reward structure, policyholders can purchase extra coverage at no cost over the years,” says Pankaj Nawani, CEO, CarePal Secure.
Choose Insurers Offering Restoration Benefits
Restoration benefits will automatically reinstate the sum insured in case it got exhausted during that year. This feature is beneficial for families or individuals who are likely to make multiple claims and ensures that coverage is available without the need to purchase a significantly increased sum insured.
Opt For Long-Term Policies
Many insurers usually allow a discount in premium for opting for a two-year or three-year policy instead of yearly renewals. Locking yourself into a lower premium saves you from being exposed to yearly hikes in premiums.
Utilize Employer Health Insurance With Personal Cover
“If your employer is providing a group health insurance policy, you may consider this: either complement it with a policy you procure yourself or avail of a top-up plan alongside it.
While employer-provided plans do not burn quite a hole in your pocket, they may not be all that comprehensive with respect to benefits or portability and, as such, having a personal backup may be crucial,” says Nawami.