Health insurance with no premium hikes: Should you buy such plans?

What if your premiums remain the same if you don’t make a claim? A few insurance companies are offering exactly this with premium lock-in options. This will freeze your premium amount until you make a claim or reach a certain age.

Some products that provide this option include Niva Bupa Reassure 2.0, Niva Bupa Aspire, and Super Star Health Insurance. The latest addition to this category is Galaxy Promise, which is the first product from Galaxy Health Insurance, a new entrant in the health insurance market. The company was founded by V. Jagannathan, who previously launched Star Health.

“Premium lock-in feature, which is quite useful for young policyholders. Once the lock-in period is over, the premium can rise by 15-20% every five years,” said Nikhil Jha, founder, Hercules Insurance Advisors.

Niva Bupa Reassure 2.0 and Aspire

Both products come with ‘lock the clock’ feature which means the premium rate is fixed at the age you purchase the policy and remains unchanged until a claim is processed. Future premiums get determined based on age bands.

Aspire’s feature is slightly different from that of Reassure 2.0. If a claim falls under Aspire’s M-iracle benefit, it will not affect ‘lock the clock’ status, unlike Reassure 2.0 where any type of claim breaks the benefit.

“M-iracle benefit covers maternity expenses – including childbirth, and associated medical services – and legal adoption (subject to policy T&Cs). It’s a unique perk for those planning to have a family, providing added flexibility to claim for costs without worrying about premium hikes,” said Mahavir Chopra, founder, Beshak.org.

Reassure 2.0 has variants such as gold, platinum and titanium. One of the key benefits is restoration benefit that activates after the first claim, and remains in effect indefinitely.

Aimed at young professionals, Niva Bupa Aspires provides multiple maternity benefits such as IVF, adoption and surrogacy. It also gives OPD and global coverage.

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Super Star Health Insurance

The policy locks in your age at entry. Your premium may change only after a claim is paid or once you reach the age of 55. After this, premiums are charged according to your current age at each renewal. However, the option is available only if someone buys the policy before hitting 50.

The policy offers a discount of up to 15% based on your Cibil score, available for those up to 50 years old. It’s a comprehensive plan with an affordable premium, allowing for an unlimited claim amount once in the insured’s lifetime. The ‘no-claim bonus’ option can be applied regardless of any previous claims.

Galaxy Promise

Galaxy Health’s ‘Premium Promise’ feature is the same as that of Star Health. It locks your premium until the age of 55 years or until a claim is made. Only those up to 50 years of age are eligible for this feature.

There are a few industry-first features in Galaxy Promise like Gala Fit that offer wellness points to children and adults.

G. Srinivasan, MD & CEO, Galaxy Health said Galaxy Health is the first insurer to offer coverage for polysomnography, a sleep study test. This will be covered up to ₹25,000 based on sum insured.

“If you don’t want the no-claim bonus, you can avail of a no-claim discount. For the first time in many years, an insurer is offering this. It will be 2-4% in its top variant Signature, starting from ₹5 lakh sum insured,” said Jha. There are multiple other industry features too, but being a new insurer, one needs to be mindful of its no-claims history and expansion of network coverage.

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Should you consider buying premium lock-in plans?

The feature sounds amazing, but be prepared for a steep hike in premium even if you make a small claim. Some plans have an age restriction to avail of this feature. It is 50 years in Super Star Health and Galaxy Promise. “Even if you buy one of these plans before age 50, once you reach 55, the premiums automatically unlock and adjust to your current age, regardless of claim history. So while this sounds like a great long-term hack, the chance to fully benefit from it is quite less,” said Chopra.

Factor in the possibility of discontinuance of the product. “Will insurers lock in the availability of these products? Without a guarantee that a policy will remain in the market for its promised duration, premium lock-ins are hollow,” said Hari Radhakrishnan, a senior member of Insurance Broker Association of India (IBAI). “Insurers frequently refile or discontinue products, citing regulatory changes, medical inflation, or the addition of new coverages. While these adjustments may be necessary for compliance and sustainability, they often force customers into new policies with higher premiums, eroding trust in long-term promises.”

To be sure, as per Insurance Regulatory and Development Authority (Irdai) regulations, insurer can withdraw any product anytime, subject to internal committee approval, by just informing Irdai.

“When this happens, you will be moved to another plan with same sum insured, but none of the above shiny added benefits may exist. So when buying health insurance, always prioritise core coverage benefits such as adequate sum insured, low/no room rent limit, no sub-limit on specific treatments, daycare, organ donor, modern treatment, etc,” said Chopra.

Insurers must shift focus to build trust. “If they guarantee premium stability, they must also guarantee the product’s longevity. Retaining a product in the portfolio for its full term aligns with policyholder’s expectations and prevents the frustration of forced migrations to more expensive options,” said Radhakrishnan.

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