How Do I Purchase a Low-cost Health Insurance Policy?

Many people avoid purchasing a health insurance policy since the premium seems too high. Some others look for a policy that has the lowest premium and they buy it without looking at the coverage offered. While health insurance premiums might seem like an unnecessary cost, when a medical emergency strikes, it can be the best investment you ever made. In this article, we will talk about health insurance and premiums and help you find the cheapest health insurance policy with the best coverage for your needs.

How is Premium Determined in a Medical Insurance Policy?

When you decide to buy a medical insurance policy, the insurance provider needs to assess the risks associated with offering the required coverage. The insurer considers a wide range of factors to gain an understanding of the risk and sends you a quotation about the offered sum assured and the applicable premium. Some of these factors are:

• Age and Gender of the policyholder
• Sum Assured
• Deductibles and Co-Pay
• Geographical location
• Policy Term
• Pre-existing diseases
• Type of policy
• Family Medical History, and many more

How to Get a Low-cost Health Insurance Policy?

Here are some tips to get low-cost or cheap health insurance plans:

• Buy Medical Insurance At A Young Age

One of the best ways to get low-cost medical insurance is to purchase it when you are in your twenties. Age and medical history are two important factors of premium calculation in health insurance. When you buy a policy at a young age, you are not likely to have any age-related medical conditions. Hence, you can get coverage at a lower premium. This is probably the best way to buy the cheapest health insurance policy without compromising on the sum assured.

• Start With A Low Sum Assured

If you are finding the premium of the policy to be too high, then you can opt for a health insurance plan with a lower sum assured. This will reduce the premium amount and make it more affordable. You can increase the sum assured as you grow older.

• Deductibles and Co-Pay

Insurers offer co-pay and/or deductibles to allow policyholders to reduce the premium by agreeing to pay a fixed amount from the claim filed by them. So, if the agreed deductible is ₹10,000 and you file a claim for ₹50,000, then you will have to pay ₹10,000 towards the medical costs while the insurer will pay ₹40,000.

• Opt For Long-Term Health Insurance Policies

If you opt for a health insurance policy with an annual term, then you will have to renew it every year. Hence, in say three years, you will pay the premium thrice. So, if the premium of your health insurance policy is ₹5000, then in three years, you will pay ₹15,000 (provided the premium is not increased due to your increasing age and/or medical conditions).

However, if you opt for a long-term health insurance policy for three years, then the premium will be less than ₹15,000. Hence, you can save a substantial amount.

• Look For Family Health Insurance Plans

If you have purchased individual health insurance policies for different members of your family, then opting for a Family Floater Health Insurance plan can help you save a lot of money on premiums. You can get a higher sum assured for each member without burning a hole in your pocket.

Summing Up

Today, it is absolutely easy to buy online cheapest health insurance. With most insurance providers offering health insurance plans online, you can compare providers and find the cheapest health insurance quotes online. Further, most insurers offer free online health insurance calculators that can help you estimate the premium of the medical insurance plans and find the most cost-efficient one. Remember, there are tax benefits of health insurance too. Make sure that you consider all aspects and choose the perfect health insurance plan for your needs. Good Luck!