Typically speaking when we are talking about health insurance we mean an insurance which can help you cover cost when there is a medical emergency. Though a regular health insurance also come with a tax incentive also like an Rs.25000 benefit under section 80D when you are paying for insurance for yourself , your spouse and your children and even you can get an extra benefit of Rs.30000 if you are paying your parents cover if they are of the age above 60 but that doesn’t mean that you should buy a health insurance cover only to save tax but since it is a cost and doesn’t lead to accumulation of long term wealth finding ways where you can save money while buying health insurance cover is the apt way to approach the decision.
The important question is how can you save the cost? The money that you pay as premium depends on how the insurance providers evaluate the risk associated with insuring your health. But before even finding the cost associated with the first step to save money is to truly understand exactly how much cover you actually require. While finding an answer to this question you should evaluate how much insurance already have also. Post the need evaluation process now you should understand the dynamics of how the price is that you pay as premium is arrived at. The premiums do largely depend on your medical history, age. Lifestyle, parents etc.
The first step towards savings as discussed above is to understand how much cover you already have. As most of the people who are working with any organization already have a cover from their employer. If you think that the cover of your employer’s policy is apt enough to cover your base cost of health care you can possibly look at a top up plan. If the amount of the employer cover is not enough or doesn’t have the right requisite feature to be helpful to support you during a medical emergency .Then you obviously look at a different plan with the right base cover. In fact as one of the right ways to save a lot of money is to start early but understand the pace at which the cost of health care is rising day by day. You can possibly go for an initial base cover at a very early age based upon the estimates that you can possibly make out at while keeping into consideration for next 15 years. If on a later stage you need some extra you can get a top up over it. The best part of getting a top-up is that it can actually help you save a lot of money in long term. Suppose you already have a base cover of Rs.5, 00,000 for which you are paying a premium of Rs.3500 which you have taken at an early age and now you want to upgrade the cover to extra of Rs.5, 00,000. If you possibly increase the base cover directly to Rs.10, 00,000 they you may possibly pay Rs.8500 where the Rs.3500 is the existing premium and Rs.5000 extra is for the new cover. On the other hand if you take just a top up extra cover of Rs.5, 00,000 they you would possibly pay Rs.2500 extra rather than paying Rs.5000. The other best part is that when you are increasing your base cover directly to Rs.10,00,000 and you make a claim the overall premium increases the succeeding year whereas in case of top up, the cover only get triggered when you have finished off your base cover so in this the effect of the increase in premium is nominal because in health insurance things get affected not because of the cover but whole depend on the cost incurred and claimed.
Another smart way to save money is that rather than having a regular health insurance plan, you can just have a critical illness cover. Of course most of the time we make claim it is always the case of critical illness. You can possibly not spend money on a comprehensive health plan but can have a critical illness plan instead. But while choosing critical illness as an option you should clear with your lifestyle like things and carefully judge yourself whether your habits are healthy at all or not. Critical illness become a long saving tool for getting a health cover because alike health insurance plans where premium increases with change in age bracket the premium for critical illness stay stable. If bought at an early age the premium will never ever increase so you have save money for long term.
Though all these above strategies may help you save money on health insurance cover but always take decision prudently and evaluate your needs effectively before even savings money.