Health insurance is vital to safeguard your financial well-being. However, an unexpected rise in the premium at the time of renewal can strain your budget. Healthcare inflation has been consistently above consumer price index (CPI) inflation since FY18. Insurers have hiked prices across both retail and group schemes because of the adverse loss ratios in the past couple of years. Here are some practical steps to prevent your health insurance premium escalating beyond your comfort zone.
Why Insurance Premium Increases?
First and foremost, it’s crucial to understand why your health insurance premium has increased.
Adhil Shetty, CEO, Bankbazaar.com, says, “Insurance companies often reassess their rates based on various factors such as age, medical history, and overall market conditions. Stay informed by checking for any policy updates or communications from your insurance provider.”
Evaluate Your Coverage Needs
Take a close look at your current health insurance coverage. Are you paying for services you don’t need? Assessing your coverage needs can help you identify areas where you can make adjustments without compromising your essential healthcare needs.
Shop for better deals
In the insurance market, new players frequently introduce competitive rates and innovative offerings. Research and compare different plans, ensuring you get the best value for your money. However, the older policy often covers exclusions which may not be the case in case the policy is new.
Policy Riders
Policy riders are additional features you can add to your health insurance policy for specific coverage. Evaluate if any riders align with your needs and can be added without a significant impact on your premium. This way, you can customize your policy to suit your requirements without breaking the bank.
“Although attractive, additional riders or benefits can inflate your premium. Evaluate if you truly need them or if you can get similar coverage elsewhere,” adds Shetty.
No-Claim Bonus
If you have a no-claim bonus feature in your policy, now is the time to leverage it. Insurance providers often reward policyholders for not making claims by offering a bonus or discount on premiums. Ensure you understand and make the most of this feature to potentially reduce your renewed premium.
Maintain a Healthy Lifestyle
Maintaining good health can directly impact your insurance premiums. Some insurers offer discounts to policyholders who demonstrate a healthy lifestyle. If you’ve adopted a healthier lifestyle over the years, inquire with your insurance provider about any available discounts.
Negotiate with Your Current Provider
Don’t hesitate to negotiate with your current insurance provider. Get to know about competitive rates and other available options, approach your insurer and discuss the possibility of a lower premium. Loyalty should be a two-way street, and many providers are willing to work with long-standing customers.
Stay informed
Government policies can also influence insurance premiums. Stay abreast of any changes in healthcare regulations or government schemes that may impact your insurance costs. This awareness will empower you to make informed decisions regarding your health coverage.
Facing a spike in health insurance premiums can be unsettling, but it’s essential to approach the situation strategically. By evaluating your needs and exploring all available options, you can make sure that your health coverage remains both reliable and affordable.