About My Health Careers Internship MedBlogs Contact us
Medindia LOGIN REGISTER
Advertisement

Keep Your Health Premiums Low With These Options

by Vanessa Jones on November 18, 2013 at 5:49 PM
Font : A-A+

 Keep Your Health Premiums Low With These Options

When the health insurance covers are very high there are ways by which you can make them work to your benefit. With the rising cost of medical care and sudden hospitalizations - health covers have become very essential. The rising cost of premiums and when some insurance companies do not honor claims people are careful about buying health insurance.

According to Anthony Jacob - the chief executive officer, Apollo Munich Health Insurance, existing premiums can be reduced with co-payment and deductible options as they are means of sharing and the cost is controlled due responsible use of health insurance.

Advertisement

"In group health insurance policies, the co-payment clause is increasingly becoming a popular risk control measure by employers as it results in direct savings by reducing the value of claims. When employees are made to share a part of the burden of hospitalization costs, it is widely expected that they will ensure responsible use of the policy benefits and, therefore, control the claims costs," he stated.

Co Payments: Under this plan a fixed amount has to be paid by the insured initially, and then the insurer will settle the claims according to the policy limit. This is used for group health covers commonly as the employer provides cover for the employee and his immediate family. At times employers want co-payments for covering parents as the medical treatment for senior citizens is frequent and expensive.
Advertisement

Deductibles: This clause refers to a specified amount which is not covered by the insurer and it is only after the insured pays this, will the insurance company take over. The deductible can be applied on a pre-claim - where the insurance cover will become effective only after the claim crosses the deductible amount.

A healthy person who has a low risk of being hospitalized can think of a co-payment clause, though it could be a major disadvantage in case there was a large claim. It will be an advantage to a senior citizen as the cost of treatment is usually high and the insurer will have to make part of this.

When the insured is liable to make co-payments they will avoid unnecessary tests and check-ups, as a result the insurance company is more confident of processing and clearing claims. The risk to the insurance company is reduced.

Yashish Dahiya, co-founder and chief executive of PolicyBazaar.com feels, "Some amount of co-payment is a good thing, say 5 to 10 per cent. But a consumer should agree to bear only as much as s/he can without it putting a strain on his finances," Dahiya pointed out.

For those with pre-existing diseases like diabetes or blood pressure where hospitalization is high, a deductible plan is better as this would reduce the premium, according to Prakash Praharaj founder and chief financial planner for Max Secure Financial Planners. A deductible option is good when it is clubbed with a base plan as one can increase the cover at a reasonable cost.

A deductible plan is good for those looking for a high cover at a low premium. The policy amount will be collected only after the deductible is exhausted. A co-pay or deductible will lower the premium and it can be added to a critical care cover. "The thumb rule is that health cover should be the amount of your annual income, up to a maximum of Rs 10 -15 lakh. Beyond that, it will be wise to take a critical illness cover. For instance, you don't need a cover of Rs 20 lakh if your claims are not likely to exceed Rs 50,000 on average. In such a case, take a deductible, since the premium will be lower," said Dahiya.

References:

Hannah Punitha (IRDA Licence Number: 2710062)

Priya Nair, November 2013

Source: Medindia
Advertisement

Advertisement
News A-Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
News Category
What's New on Medindia
First Dose of COVID-19 Vaccines May Improve Mental Health
Printed Temperature Sensors help with Continuous Temperature Monitoring
View all

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

More News on:
Health Insurance - India 

Recommended Reading
Health Insurance For Pre-Existing Conditions
Many people worry about getting health insurance plans for pre-existing conditions and they believe ...
Quiz on Health Insurance
This Quiz is to test your knowledge on health insurance in the U.S, there is so much activity ......
Health Insurance
This slideshow explains the concepts about healthcare insurance industry in India....
Washington's Health Insurance Succeeds as Federal Programs Fail
Washington has almost the highest number of enrollments even though they don't have a federal ......
Health Insurance - India
Health insurance has emerged as one of the fastest growing segments in the non-life insurance indust...

Disclaimer - All information and content on this site are for information and educational purposes only. The information should not be used for either diagnosis or treatment or both for any health related problem or disease. Always seek the advice of a qualified physician for medical diagnosis and treatment. Full Disclaimer

© All Rights Reserved 1997 - 2021

This site uses cookies to deliver our services. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use