Acomprehensive health insurance plan is one of the most important tools for the financial security of a family. It is important to get health insurance coverage to the extent that one can afford it.
Recently, Nitin Kamath, the founder and CEO of Zerodha touched upon the issue of the importance of healthcare insurance in one’s personal finance journey.
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“In 2014, the last year for which data is available, the Avg cost of inpatient care per hospitalisation was Rs 26,475 in urban areas & Rs 16,676 in rural. Over 6.3 crore Indians are faced with poverty every year due to health costs alone; according to government estimates,” he wrote on Twitter.
According to the National Institute of Public Finance and Policy economists, every year 8-9% of Indians are pushed below the poverty threshold due to healthcare costs, he added.
Kamath also quoted a report by India Spend, which claimed that healthcare costs will continue to rise and the only way to keep up is by creating awareness about the importance of health insurance to all Indian households.
With the increasing demand for health insurance plans, premiums are also rising especially in the aftermath of Covid. In such a scenario, it is important to know certain discounts that insurers offer to eligible buyers.
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Lifestyle discounts
Anyone who has ever bought a life or medical knows that insurance companies raise premiums if the buyer is a smoker. A non-smoker is likely to get a 25% discount on a health insurance plan as compared to a smoker. Buyers are also rewarded with discounts for maintaining a healthy lifestyle. A leading insurance company offers as much as 25% discounts on healthcare plans provided that medical reports of buyers show stable health conditions for two consecutive years.
Family discount
Most insurers offer discounts on premiums if the primary buyer includes more family members in the health insurance plan. But these discounts do not increase with the number of family members added. Such plans that cover multiple members of a family are called family floater plans. Typically, the discount is offered one time when the primary buyer adds the first member to the plan. No discount is given upon the addition of subsequent members.
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Cumulative payment of premiums
Most insurers usually give a 5-10% discount on premiums if the buyer makes a lump sum payment for 2-3 years of coverage.
Waiting period discounts
Most plans have a certain waiting period during which any pre-existing conditions are not covered. If buyers do not have any pre-existing conditions, the insurer may give a 4-5% if the customer agrees to increase the waiting period.
Good credit score
Paying your bills on time pays eventually through good credit scores. Some insurers offer 5-10% discounts to customers who have a credit score of 750 or above.
