The secret behind making savings on your health insurance policy and taking informed decisions in the future

Health Insurance in India is one of the many ignored necessities. IRDA’s estimate suggests that only 21.62 crore people, i.e. 17% of India’s population, were covered by health insurance at the end of March 2014. This number is very depressing because, in a country where diseases are in a rapid rise, only 17% of the population is insured. What could possibly be the reason?



Awareness! There is a lack of awareness about health insurance in India and most people consider Health Insurance as an added financial burden on their scarce livelihood. However, what people fail to understand is that this little investment can save people from a major financial crisis in future. The Hindu states that “Families meet almost 70% of their health expenses out of their own pockets, placing a considerable financial burden on poor households, often pushing them deeper into poverty.”

The prime motives behind health insurance are protection against health crisis and savings. A well-informed buyer can save on his health insurance policy. Here are some tips you need to know:

Take Advantage of Your Employment:

If you are not particularly interested in buying a health insurance (and if you have real valid reasons to do so), you can take advantage of the fact that you are working. Never deny insurance from your employer because this is the cheapest way to get insured. Moreover, most organizations offer group health insurance wherein you can cover your children, spouse or parents. This helps you and your immediate family get a decent coverage while not having to pay premiums.



Put a step forward as early as you can:

A basic logic works behind this. The younger you are, the healthier you are considered to be and lesser would be the premium. Insurance premiums increase with age. Get a health insurance plan at a young age while you are still fit. With the progression of age, you are likely to face health issues which might become an obstacle in your insurance plan and the entire protocol of pre-existing diseases comes into play. The eligibility for getting in insurance without hassles declines with age. So better be prompt and begin early to save on health insurance.

Research the market before making a decision:

The typical Indian mentality follows the extremes. It either wants something that is the cheapest or something that is most expensive because we find expensive synonymous with good. However, in case of insurance, the cheapest policy might not be the best nor can the most expensive one guarantee proper protection. There’s no ideal health insurance plan. There are only suitable plans. Every individual has different needs and different life conditions. A cost-effective policy is that which gives you a decent coverage in less premium without compromising on the sum insured. To find the most suitable plan, you need to research the market and evaluate various options figuring out the most convenient.

Choose a top up instead of a new policy

If you want to be insured with a critical illness cover apart from the individual policy you own already, go for a top us instead of buying a different cover altogether. This saves your premiums and provides adequate coverage. Moreover, choose for a critical illness cover only if you fall into the category of middle aged because a young individual is not much in need of a critical illness cover.

Insure your family

If you have a family, and you wish to get your family insured, it is advisable to get your family insured with a floater plan instead of choosing individual plans for your family. In a floater policy, the sum insured will be jointly available for every individual of the family in a single premium payment.

Act smart with floater insurance

A floater insurance policy calculates the premium based on the age of the eldest member. If you cover your parents under a floater, you are likely to be paying a higher premium because it will be calculated based on your parent’s age. It is advisable to take a separate policy for your parents. It will also help you save taxes on both.

Now that you know the secrets, you are an informed customer. Ask your provider for details before you buy the policy. You can try health insurance online from HDFC Ergo, which is a premier insurance company in India. Also, before choosing a health insurance policy, look out for providers who help you with detailed policy documents and provide customer support to assist you in taking informed decisions about your policy. Go ahead and research to get covered with the most suitable health insurance policy.

(This article has been written by Utkarsh Sahu, who writes for various tech mags and admires technology with paradigm-shifting attributes.)

(Image: Thinkstock)