How To Buy Health Insurance Policy With Low Premiums?
“I don’t have health insurance but I do have car insurance. So, whenever I get sick I crash my car into a tree”, said my friend Kumar* casually the other day when our conversation drifted over to healthcare. He cited the high premiums on health insurance as the reason for this hilarious and nonsensical statement. As a good friend, I felt the obligation to educate him about the various avenues available to buy health insurance at low premiums. I share below excerpts from our conversation which I believe will be useful to you, dear reader!
* - Name changed on a strict condition of anonymity from friend
Kumar: What on earth are health insurance premiums anyway?
Me: Glad you asked! A premium is the amount of money that you pay the insurance company to purchase the health insurance policy. The premium amount will have to be paid annually to renew your policy, so that you can retain your coverage year-on-year.
Kumar: I looked at the brochures and the policies seemed very costly.
Me: You have to understand that there is no one size fits all approach to buying health insurance, Kumar. Different plans offer different premium amounts.
Kumar: So, what are the different plans?
Me: Individual health insurance premiums are to an extent non-negotiable since you are purchasing insurance only for yourself. You can approach the insurance company and inquire about deductibles which means that you agree to pay for one portion of your claim settlement and this attracts a lesser premium due to reduced burden on the insurance company.
Family floater plans on the other hand provide coverage for the entire family and so insurance companies offer attractive premium rates since the cost is distributed over a number of family members. Getting health insurance with your employer is also a great way to purchase health insurance at really low and affordable premium rates since organizations attract heavy discounts due to the number of people enrolling.
HDFC ERGO offers the super attractive my:health Medisure Super Top Up Insurance plan. It strengthens your existing plan with higher sum insured and wider coverage at cheap rates. When your existing policy gets exhausted, this can also provide back-up coverage. You can also buy this plan the first time by paying the threshold premium amounts.
Kumar:I heard that health insurance premiums increase by year. Is this true?
Me: Yes, it is. Health insurance premiums over time tend to get very expensive. Health insurance premiums are based on age and so the best time to buy policies is when you are young and healthy.
Kumar:Thanks man! That was a lot of great information. You certainly have changed my mind. Any bro tip for me?
Me: HDFC ERGO offers some of the good health insurance plans in the business. Look up their brochures and prospects online. Their customer support executives are also ever ready to help! And don’t thank me. Just make sure you buy your health insurance and for God’s sake, don’t crash your car on purpose! Just don’t look for the cheapest health insurance plans, instead look for a plan that comes with no restrictions.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.