Health insurance policies are one of the most important financial tools that you cannot afford to miss in your retirement period. There have been several cases where people without health insurance have lost their entire retirement savings for payment of medical bills. Also, having a Lower Health Insurance Premium is very essential in the phase of retirement. So, one cannot ignore one’s health insurance requirement as it’s an essential risk mitigation tool for everyone.
But, is there a way to keep the health policy premium in control even with an increase in your age? The answer is yes, there are a few arrangements you can make to lower your health insurance premium. Let’s find out the options that you can use to lower your health insurance premium.
Also Read: Can A Rs 5 Lakh Health Coverage Take Care Of Senior Citizens’ Needs?
Get A Top-Up Health Policy With A Deductible On Base Plan
Shilpa Arora – co-founder and chief operating officer, of Insurance Samadhansays that availing of a top-up on a base plan is a cost-effective means to keep the premium burden low without compromising the coverage.
“Although adding top-ups may inflate the premium, they will still be cheaper than traditional health plans. One option for them would be to consider getting a base health plan of Rs. 5 lakh and adding a top-up plan with a deductible of Rs. 5 lakh,” she says.
Arora adds: “Building a medical emergency fund can help senior citizens account for their premium payments after retirement. Meanwhile, the interest component could help account for the OPD bills, allowing them to reduce the premium burden by at least 25 percent. Even No Claim Bonuses (NCB) can help retired policyholders increase their sum insured substantially.”
Choose The Policy Size Wisely
You must assess your health insurance requirements correctly. Some people take a double or triple-sized health policy than what they need. Having health insurance of a little higher sum insured than the actual requirement can be a better idea than staying underinsured. However, you must not go overboard. You may check the treatment costs in various hospitals in your location, your present health condition, and your existing ailments to make a rough estimation of your health insurance requirements. Accordingly, you can get a health insurance policy of the appropriate size.
Other Ways To Reduce Health Insurance Premium
You can also reduce the premium on your health insurance by using the co-pay option. Under co-pay, you have to pay a fixed amount or a fixed ratio of the total claim before the insurance company makes the remaining payment. Choose the co-pay option only if you are well capable of paying the fixed amount before a claim. The co-pay percentage can also be selected according to your comfort level.
Experts says that several lifestyle-based insurance products refund the premium amounts based on a policyholder’s daily lifestyle habits. For instance, some insurers refund 25-100 percent of the policy premium if the policyholder walks 10,000 steps daily. However, such insurance products are relatively new, making it vital to check if they offer the same benefits to senior citizens before one decides to purchase them.
Do remember that by reading the features of your health policy, you can find out more ways to reduce the premium. Even a little reduction in the health premium can be a big financial relief during your retirement period.
The author is an Independent Financial Journalist