Six ways to smartly save on insurance premiums

  • Apr 27, 2020 AEST
  • Team Kalkine
Six ways to smartly save on insurance premiums

The coronavirus pandemic has resulted in financial distress for millions of people. Business activity has disrupted, job losses have mounted, and investments have plunged in the stock market leading to major economic fallouts for countries all around the world.

Millions of people have become unemployed and subsequently losing the health coverage associated with their jobs. Several people have received substantial pay cuts or got their work hours reduced, rendering people helpless and withdraw their monthly premiums due to lack of money.

As COVID-19 is taking lives all around the world, never did health insurance seem that necessary as the risk of falling sick, especially for people older than 65 or people with a medical condition. The medical process can cost you quite a lot of money which you will have to bear on your own if you do not have insurance.

Here are some tips to help you if your finances have been struck to help you pay your health insurance premiums:

  1. Start early

There are several advantages associated with buying a health cover at a young age. The premium you pay on your health cover is contingent on the state of your health, age and medical history. The more diseases like hypertension, diabetes and other health issues you have, the more premium will be demanded by the health insurance companies. The insurance premiums tend to rise with age. Hence, you must try to start as early as possible.

At a young age, insurance is affordable, and the relatively better health conditions of young individuals compared to the older generation makes them eligible to buy health insurance. Once the age increases, the cost of the insurance becomes expensive with a sharp fall in the eligibility to purchase insurance.

Hence, choosing a health plan when you are young can help you save on the insurance premium substantially.

  1. Take up low-cost solutions

If cost is the first thing that matters to you when you buy a health cover, then the best way is to buy a policy with the least premium without negotiating on the sum insured, instead of choosing any policy. But cheap policies may not always be beneficial for you.

You must research the whole marketplace before buying a health cover or an insurance plan to keep yourself informed and take better decision on selecting a policy. While doing your research on methods, you can compare premium costs, coverage etc. of numerous insurance providers. Also, you can avoid the fees of an insurance agent if you buy your insurance cover online.

ALSO READ: Unveiling Current Challenges & Opportunities in Healthcare Space Amidst Virus Threat

  1. Use top-ups for higher cover

Adequate health cover is a necessity in a world of rising costs and increasing uncertainties. High coverage implies a high premium. If you are insured under a health cover by your employer or have an individual health plan but want a higher sum insured, you can take a top-up plan instead of an additional policy. The top-up cover gives the extra needed protection with significant savings on premium.

A top-up plan is majorly bought for middle-aged or older people as their risk to diseases is comparatively higher than younger people. A top-up comes into effect once the assured base sum is spent.

  1. Heath coverage for family

You must consider the requirements needed by you and your family to pick a health insurance plan. You should choose only the features you need so that you don’t end up paying an extra premium for the features that are not required as the premium charged by a health plan is dependent on the coverage extended to you.

For example- maternity advantages added in a health plan. If you do not plan on having more kids, a health plan that includes maternity coverage is not essential for you. So, you must evaluate your coverage needs and then opt for a health plan.

ALSO READ: COVID-19 Treatment: Developments in Australia

Also, opting for a health plan for two or more people, you can reduce the cost of health coverage as they now come under a family floater plan. This accounts for some of the most significant advantages of a family floater plan.

  1. Go for a higher deductible

A deductible is a certain amount to be paid before the insurance plan starts. If you spend a higher deductible amount, the premium amount that you pay will get reduced for your health insurance plan. But you must be cautious while choosing a deductible as a high deductible can leave you with some healthcare costs that you will have to bear on your own.

Some policies provide a voluntary deductible route where the customer can opt to pay their medical bills partially themselves before claiming a percentage of the bill amount from the insurer.

  1. Lead a healthy lifestyle

If you adopt a healthy lifestyle, you are less susceptible to diseases. Many health companies offer an exclusive premium discount if you keep a healthy lifestyle by going to the gym, running and eating healthy.

Quitting smoking, cutting on alcohol and losing weight can not only reduce your visits to your doctor but also significantly reduce health cover costs. Hence, you can save on your money by pursuing a healthy way of life and giving up bad habits.

You must have a health insurance plan in the present world of sky-rocketing healthcare costs, an optimal coverage amount with an affordable premium is essential. There are still several people who do not buy a health cover as they cannot afford it. But through the points mentioned above, you can lower your health insurance expenses. 

GOOD READ: Private Insurers and APRA differ in their Industry Outlook: A look at the Industry challenges

 


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