Premium Vs Coverage

Premium Vs. Coverage: Striking The Right Balance In Health Insurance

The importance of health insurance is apparent from the fact that it makes it possible for individuals to receive top-notch medical care without having to worry about exorbitant treatment costs. However, when it comes to the penetration of health insurance in India, the country still follows a very decentralized approach as it is still optional in the country to purchase a health insurance plan. 

Even though health insurance is a reliable financial instrument, it is shocking to learn that there are around 400 million people who don’t have any type of health insurance in India. The primary reason why people are avoiding health insurance is its high premium costs. 

Nevertheless, rather than excluding it completely from their financial systems, people should learn how to strike a good balance between the premium amount of health insurance and its coverage. 

Let’s learn how to be wise about it so you may pay less and still receive the best coverage!

Need For Higher Coverage & Lower Premium In Health Insurance

Technology and medical science advancements have led to the adoption of numerous innovative methods for the treatment of severe illnesses and for carrying out expensive surgeries. Additionally, a lifestyle change is enticing people to seek treatment at ultra-luxurious facilities. These considerations, together with the increase in healthcare costs, are causing consumers to search for health insurance plans that can offer higher coverage options. 

Yet, affordability may be a problem for many. For instance, the premium amount of health insurance may rise depending on the product and the number of family members covered by the policy. People prefer health insurance plans that don’t burn holes in their pockets and still offer sufficient coverage because they already have a lot on their plates, such as outstanding debts, future living expenses of family members, and more.

How To Strike A Balance Between Health Insurance Coverage & Premium Amount?

It is recommended to strike a balance between the premium amount and coverage of a health insurance plan to get the maximum out of the plan. One can reduce the premium amount and maximize the coverage by the following means:

  • Opting For High-Deductible Plans

A deductible is essentially the sum one must pay before his/her insurance policy begins to provide benefits. A high-deductible health insurance plan can prove helpful in reducing the cost of health insurance. 

The insurer gives a lower premium rate when the insured willingly chooses a higher deductible. However, in the event of an unplanned emergency, he/she will be required to cover up to a specific sum himself/herself. Therefore, it is advised to consider this before deciding to pay a higher price.

  • Considering Top-Up & Super Top-Up Plans

With age, the insurance requirements typically increase. Therefore, insurers have designed top-up and super top-up plans that can easily increase coverage without making the insured buy a new health insurance policy outright or change his/her current plan for higher coverage, which would otherwise cost more. Once the fundamental limit of the sum insured has been achieved, these plans become active. 

  • Comparing Insurance Providers

Make sure to compare and evaluate various health insurance options on the market before purchasing health insurance. Even though certain insurance policies may have high premiums, that does not necessarily guarantee that their coverage is better. Therefore, before choosing an option, compare the premiums, deductibles, coverage limits, waiting periods, and other terms and conditions. 

  • Utilize The Benefit Of Co-Payment

Co-payment is a provision in which the insured and insurer share the cost of the claim in an established proportion. Choosing a higher copay amount will lower the health insurance premium, but the policyholder will be responsible for a portion of the medical costs. 

So, before choosing this feature, an individual should think about his/her medical history. He/she is better off without a co-pay agreement if he/she frequently needs medical services.

  • Prefer Purchasing Online

Online health insurance is significantly less expensive than offline insurance. This is because buying things online doesn’t include a middleman and it requires little paperwork. Therefore, it is advisable to purchase a health insurance policy through online methods. 

  • Choosing Family Floater Plans

Family floater plans should also be considered because they can offer coverage for the whole family at a lesser cost than individual policies. A floater health insurance plan might cover you, your spouse, your dependent children, or your parents. Instead of paying for individual health insurance plans for each member of the family, a family floater health insurance plan allows for significant premium savings.

  • Don’t Ignore Policies With NCB

Some insurance companies reward policyholders who maintain a claim-free record for the duration of the policy. This benefit is available to you in the form of a cumulative bonus, which differs from insurer to insurer. Consider buying health insurance with these features since they can improve your coverage without raising your premiums.

Can We Choose Coverage Over Premium Or Vice Versa?

Health insurance plans undoubtedly offer the much-needed financial support to the people in case of medical emergencies. Some people search for low premiums while selecting a health insurance plan. However, in preference of affordability, they end up choosing the most basic plan with minimal coverage. Whereas, some people go for a higher premium for having a higher sum insured. However, that does not mean that the plan will match the requirements of the policyholder.

Logically speaking, one should always identify his/her requirements before choosing a health insurance plan. If your health insurance requirement is minimal, then lower premium plans should be chosen because there is no use in wasting money by paying extra premium amounts. Nevertheless, if your health insurance requirement is large, then going for a higher sum insured is suitable rather than going for a lower premium plan. This is because insufficient coverage amount can cause economic losses to the policyholder.

Tips To Get Maximum Coverage At Minimum Premium For Chronic Health Conditions

Finding the best coverage at the lowest cost may be difficult for people with chronic health conditions. But there are a few tactics that can help them get the most coverage while paying low premiums:

  • Choose Policies With Pre-Existing Disease Cover: Health insurance policies that cover pre-existing diseases should be purchased by individuals with chronic conditions Even while some plans could have waiting periods, once the waiting time is over, they can offer coverage for chronic diseases.
  • Choose Disease-Specific Plans: They should choose disease-specific health insurance policies, which can provide greater coverage for the specific ailment and be advantageous for people with chronic health problems.
  • Consider Buying Individual Plans: They can look into individual plans since, in some situations, they may provide more extensive coverage for chronic diseases than group insurance does.

Wrapping It Up!

It’s crucial to achieve a balance between a sufficient insured amount and reasonably priced rates when it comes to purchasing health insurance. While a higher insured amount provides better protection, it may also mean higher rates. 

As selecting the right health insurance plans at a lower premium is mostly preferred, the above-mentioned tips and tricks can prove extremely handy. Also, it’s important to consider your needs, income, and available options in choosing the best health insurance plan. Because health is wealth, having the appropriate health insurance coverage will shield you from life’s unforeseen turns.

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