How to reduce your health insurance premium in 2025? Follow these 7 key strategies | Mint

Health insurance is essential for financial security in times of medical emergencies. However, rising premium costs can be a burden. Fortunately, there are smart ways to lower your health insurance premium without compromising on coverage. By making informed choices, you can ensure affordability while still getting the protection you need. Here are some practical strategies to help you reduce your health insurance premium.

Choose a higher deductible plan

A deductible is the amount you pay before your insurance starts covering expenses. Opting for a higher deductible can significantly lower your premium. However, ensure you have sufficient savings to cover the deductible in case of a medical emergency. This strategy works best for those who are generally healthy and do not require frequent medical attention. 

For example, if your current policy has a deductible of ₹10,000 and a premium of ₹25,000 per year, increasing the deductible to ₹25,000 might reduce the premium to ₹18,000 per year. While this means you pay more out-of-pocket before insurance kicks in, it can be a cost-effective choice for many policyholders.

Opt for family floater plans

Instead of purchasing separate policies for each family member, a family floater plan covers the entire family under one policy. This reduces overall premium costs compared to individual policies while still providing sufficient coverage. 

For instance, if you are a family of four, instead of paying ₹15,000 per person for separate policies, you might get a family floater policy covering all members for ₹40,000. This ensures that all family members are covered under a single sum insured, reducing costs while maintaining adequate protection. This might apply only for those who are just starting their family and children upto 25 years of age and some companies have their own t&c so do checkout.

Maintain a healthy lifestyle

Insurance companies consider your health status when determining premiums. Leading a healthy lifestyle by exercising regularly, eating well, and avoiding smoking or excessive alcohol consumption can help lower your premium. Some insurers even offer discounts for policyholders with a healthy medical history. 

For example, some insurers conduct annual health check-ups and offer premium discounts to non-smokers, individuals with a healthy BMI, or those who maintain good cholesterol and blood pressure levels. Staying healthy not only reduces your insurance costs but also ensures a better quality of life.

Buy health insurance at a younger age

Health insurance premiums increase with age due to a higher likelihood of medical conditions. Purchasing a policy early in life helps lock in a lower premium and ensures continuous coverage when you need it the most. 

For example, a 25-year-old buying a ₹10 lakh cover might pay ₹8,000 per year, while a 40-year-old for the same cover might pay ₹18,000 per year. By purchasing health insurance early, you save significantly over the years and secure coverage before developing any pre-existing conditions, which could otherwise lead to higher premiums or exclusions.

Compare and choose the right policy

Different insurers offer varying premium rates for similar coverage. Comparing policies from multiple providers helps you find the best deal. Online insurance aggregators and comparison websites make this process easier. Look for policies that offer the right balance between cost and benefits. Check factors like the claim settlement amount ratio, claim repudiation ratio, and claim pendency ratio and many others. Choosing an insurer with a good track record ensures smooth claim processing and better value for money.

Select only necessary add-ons

Add-ons like maternity coverage, critical illness cover, or room rent waivers increase premiums. While these benefits are useful, only opt for those that match your actual needs to avoid unnecessary costs. 

For instance, if you do not plan on having children soon, avoiding maternity coverage can save you money. Similarly, if your employer already provides critical illness insurance, you may not need an additional rider in your personal policy. Evaluate your actual needs before adding extras to your policy.

Pay premiums in annually or long term instead of monthly

Many insurers charge extra when you opt for monthly or quarterly premium payments. Paying annually can help you save on additional administrative charges and keep your premium lower. 

For example, a policy costing ₹24,000 per year might cost ₹2,200 per month if paid monthly, totalling ₹26,400 annually. By opting for a single annual payment, you can avoid these extra charges and save money in the long run. You can also apply for a long term premium like a two or three year plan wherein you get some more discount on your premium amount.

Conclusion

Reducing your health insurance premium requires strategic planning and informed decisions. By choosing a higher deductible, maintaining a healthy lifestyle, selecting only essential add-ons, and comparing policies, you can keep costs manageable while ensuring you have the necessary coverage. 

Investing time in selecting the right plan today can save you significant money in the long run while keeping you financially protected in medical emergencies.

Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited