Health Insurance

6 Ways to Reduce Health Insurance Premiums


Owing to the ever-rising medical expenses, availing of a good, reliable health insurance policy is next to mandatory.

However, in spite of its importance, many people refrain from getting a health insurance policy.

A common reason why individuals do not get medically insured is that they assume they would have to pay a high health insurance premium on their policy. While high premiums are a major cause of concern, here are six ways you could make the most of your insurance policy while reducing the costs of your mediclaim policy premium.

  1. Start early

You are at your fittest best while in your youth. Getting a medical insurance during this period makes a lot more sense as you have a lesser chance of suffering from health conditions. This would mean less risk for health insurance companies. Thus, they charge a lower premium for medical insurance when the insured is young. Therefore, if you are between the age of 18 and 35 years, your premium would be lesser as compared to someone who is in the age bracket of 36 to 45 years.

  1. Opt for low personalized health cover

To begin with, you could start with a policy that offers you a low coverage. The mediclaim policy premium you pay on this one is much lower as this policy is very basic without too many frills. However, you may rest assured that you have your health covered.

  1. Avail of health returns

Today, a number of health insurance companies offer health returns as part of their fitness rewards program. Here, the fitter your lifestyle, the lower will be your health insurance premium. As the name suggests, these health returns are in the form of reward points that you may claim at the end of the year. These could also be used to pay medical bills and for health check-ups. Certain insurance companies offer as much as a 30% premium back as part of their health returns. 

  1. Choose deductibles

An amount you pay to start your health insurance is known as a deductible. In health insurance plans that offer deductibles, you would need to pay a preliminary amount from your pocket, before your insurance covers the rest of the charges. Paying a higher deductible will, in turn, ensure that you end up paying a lower premium for medical insurance. 

  1. Opt for voluntary co-payments

A voluntary co-payment is a fixed percentage of the amount you have decided to pay for your medical expenses while your health insurance provider pays the rest. For example, you pay 20% while your insurance company pays 80%. By doing so, you may reduce the chances of a claim that may not even occur thereby helping you save on premium costs.

  1. Select a longer tenure

Most insurance providers offer discounts on health insurance policies that have a tenure that is longer than a year. So, if you want to reduce your premium for medical insurance, select a tenure of two years or longer.

Follow the aforementioned points to reduce the burden of paying huge premiums. Now that you know the tricks of getting maximum benefits from your insurance policy while paying lower insurance premiums, avail of a health insurance policy as soon as possible!

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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