Health Insurance Seems Expensive? Reduce the Premium in These 6 Ways Health insurance is one of the most important investments for your health and financial safety. It protects you and your family from high hospital bills and medical expenses. But when people go to buy a policy, they often feel that the premium is very expensive. Because of this, some delay purchasing it or choose a very low cover.
The truth is, health insurance does not always have to be costly. With some smart decisions, you can lower your premium without losing the essential benefits. Let’s see six simple ways to reduce your health insurance premium.
1. Buy Health Insurance at a Young Age
Health Insurance Seems One of the easiest ways to get a lower premium is to buy health insurance early in life. Insurance companies charge lower premiums for young people because they are healthier and have fewer medical risks. For example, a 25-year-old will pay much less than a 40-year-old for the same health plan.
So, don’t wait until you are older or until a health problem arises. The earlier you buy, the more money you save. Plus, you will also complete the waiting periods for pre-existing diseases early.
2. Choose a Higher Deductible or Co-payment
Health Insurance Seems Most insurance policies give you an option of deductible or co-payment.
- Deductible means the amount you pay from your pocket before the insurance starts covering expenses.
- Co-payment means you agree to pay a certain percentage of the hospital bill, while the insurer pays the rest.
By choosing a higher deductible or co-payment, your premium amount reduces. For example, if you agree to pay 10–20% of the bill, your yearly premium becomes more affordable. But remember, you should choose this only if you can manage to pay that part of the bill comfortably.
3. Opt for a Family Floater Policy
Instead of buying separate health insurance for each family member, you can go for a family floater plan. In this policy, one total sum insured covers the entire family. For example, if you take a ₹10 lakh family floater policy, all members of your family can share that cover.
This usually costs less than buying individual plans for everyone. It is very useful for young families with children, as the premium stays affordable while giving good coverage.
4. Maintain a Healthy Lifestyle
Insurance companies often give lower premiums or special discounts to people who live a healthy lifestyle. If you don’t smoke, don’t drink heavily, and maintain normal weight and fitness, you are considered low risk.
Some insurers even have wellness programs, where they reward you for completing fitness goals, going for regular health check-ups, or tracking your physical activity. These rewards can reduce your premium or give you cashback. Staying healthy not only saves on medical costs but also makes your insurance cheaper.
5. Compare and Choose the Right Plan
Many people make the mistake of buying the first policy they see, without comparing. But premiums and benefits vary widely across different insurance companies. Some plans may give the same coverage at a much lower price.
Before buying, compare at least 4–5 health insurance policies online. Look at the premium, coverage, hospital network, exclusions, and claim settlement ratio. You may find a plan that is not only cheaper but also better for your needs.
Online aggregators and comparison websites make this process easy and quick.
6. Go for Long-Term Policies
Health insurers often provide discounts if you buy a policy for two or three years instead of just one year. While this means paying a little more upfront, it reduces the overall premium cost in the long run.
For example, if the yearly premium is ₹10,000, the three-year plan might cost ₹27,000 instead of ₹30,000. That way, you save ₹3,000 immediately. It also protects you from yearly premium hikes for that duration.
Bonus Tip: Use Tax Benefits
Health insurance premiums are eligible for tax deduction under Section 80D of the Income Tax Act. So, while you may feel you are paying a lot, you actually save money on taxes. For example, you can claim up to ₹25,000 per year for yourself and your family, and additional deductions if you are paying for your parents’ insurance.
Final Thoughts
Health insurance may feel like a big expense, but it is a protection you cannot ignore. Hospital costs are rising every year, and one medical emergency can drain your savings. By following these smart methods—like buying early, choosing family floater policies, maintaining a healthy lifestyle, and comparing plans—you can reduce your premium and still get strong coverage.
