7 Quickest ways to reduce your Health Insurance Premium - Ratinah

Health Insurance Premium - Insurance has various types and benefits provided. This will affect the amount of insurance premiums that must be paid. In the world of insurance, there are several general terms that are very familiar to the ear. One of them is the insurance premium, which means the amount paid for the insurance policy

7 Quickest ways to reduce your Health Insurance Premium - Ratinah

More specifically, insurance premiums can also have a broader meaning. So as not to be misguided, let's understand the meaning of insurance premiums and how to get the following best health insurance premiums.

Definition of Insurance Premium

Departing from the main function of insurance as a means of protection, all agreements between policyholders and insurance companies are valid and legally binding transactions. For the protection obtained, the policyholder must pay a certain amount of money during the insurance process or what is commonly referred to as a premium.

As long as the insurance premium is paid on time and in accordance with the agreed terms and conditions, the insurance company is obliged to provide the promised benefits. On the other hand, if the policy holder fails to pay the insurance premium in accordance with the agreement, the insurance company has the right to terminate the protection benefit, in accordance with the provisions that have been fully regulated in the insurance policy.

Determination of Insurance Premium Calculation

The amount of insurance premiums paid depends on the type and condition of the assets being insured, both for health, life, property and so on insurance premiums. Generally, several determining factors in health and life insurance premiums include:

  • Insured age
  • Medical history
  • Type of work
  • Amount of Sum Insured (UP)
  • Period of insurance/policy contract
  • Preferred type of insurance

Apart from these unavoidable determinants, insurance premiums can actually still be adjusted according to need, starting from the lowest/affordable one, to higher for maximum benefits as well.

It is an old saying — “Health is Wealth.” The most important step to maintain this wealth is to get a health insurance policy for you as well as your family. But, sometimes the premiums of such policies can leave you in and out of the budget situation.

Can you really do something to bring down your premium? Read on to learn about the 7 Quickest ways to reduce your Health Insurance Premium.

1. Adopt a healthy lifestyle

Living a healthy life has many benefits. Your healthy lifestyle can easily help you in bringing down the health insurance premium. Exercise regularly, eat healthy diet, avoid smoking and heavy drinking — and your visits to the doctor will surely be minimized. The healthier you are, the lesser you are represented as a risk for the insurance company.

2. Shop for the best available price

One of the best options to keep your premium lowest is to go out and shop around for the health care policy. This will ensure that you find the best available policy that fits in your budget. Do a thorough research before investing in any policy. You can get information from your friends and relatives or even Internet.

3. Take up plans with higher deductibles 

Insurance plans with higher deductibles tend to have lower premiums. Typically, deductible is the amount you are expected to pay toward hospital, doctor, and other medical bills. Taking up a plan with a higher deductible may not be a universally applicable idea. If you’re generally healthy and do not fall ill very frequently, then you can take up this plan. This way you can keep your premium at a lower rate and avail basic health care facilities as well. But, if you have a history of some major consistent illness, avoid taking this plan. 

4. Take up a policy early in your life

The premium varies to a great extent with the age of the person. Try and get a policy as early in your life as you can. For example, if you buy a policy at the age of 25, then you’ll have to pay lesser premium but, if you go for the same policy at the age of 50 you’ll end up paying a raised premium amount.

5. Get in touch with independent insurance agents

You can take help from independent insurance agents. These agents represent several insurance agencies and can guide you to pick the right kind of health insurance policy and then plan your premiums at an affordable rate. Since independent agents will compete to get the business – so you’ll get serious offers quickly.

6. Buy insurance while it's on promo/discount

In accordance with economic principles, buying insurance should also ideally aim for moments that are considered more profitable. One way is to aim for promos or discounts on insurance products. For example, during a pandemic, some insurance companies provide more benefits such as extra facilities with the same premium, or lower health insurance premiums with the same benefits.

7. Make sure to buy only the riders you need

The term rider, or additional facilities, is a benefit that can be included in an insurance policy as additional protection. Rider is actually a quite profitable feature, because it can be obtained cheaper if it is included in an existing insurance policy.

However, if your target is to have more affordable health insurance premiums, then it's better to be more selective in buying rider benefits. Make sure to understand each rider available on the policy and analyze according to your needs and budget.

8. Pay attention to the policy contract period and adjust it to your needs

The longer the policy contract period you choose, the higher the insurance premium required. This can actually be overcome by buying insurance from an early age, so that the premium value paid is more profitable for the long term. Especially considering that health insurance is not something that is short term.

In contrast to, for example, asset insurance, such as vehicle insurance, the value of which will continue to decrease, so the premium does not need to be paid in the long term.

That's 7 Quickest ways to reduce your Health Insurance Premium

Talking about health insurance premiums, you should not rely on numbers alone. If you want to be insured safely, prioritize quality as a standard in calculating your health insurance premiums. If premiums are paid cheaply, but cannot be relied on in an emergency, then this is an even greater loss.

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insurance premium, insurance policy, insurance premiums, health insurance, insurance companies, buying insurance

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