Skip to main content

How to Reduce your health insurance cost

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

 

In the past year, health insurance cost has increased across insurers.

The insurance regulator's decision to abolition claim- based loading and introduce life- long renewability are the main reasons behind higher premiums, besides rising medical inflation, say insurers.

These raise the sector's costs, too. But the regulator allows companies to raise rates only once every three years.

Public sector companies' pricing has shown an increase of 14 per cent in the last financial year compared to 2012. And, though private sector companies have not raised prices steeply, they have accounted for a higher premium in age bands beyond 45 years, posting a rise of 10- 12 per cent in the same bands. In the older regime, premiums increased when a policyholder made a claim (claim- based loading) or when he moved from one age bucket to another. You move from one bucket to the other roughly every five years. The new norms allow premiums to increase only when there is a change in the age bucket.

So, while fixing premiums, we will have to factor in this. Therefore, to a certain extent, some kind of cross- subsidisation will happen between the younger and the older customers.

Given that premiums for higher age brackets are anyway high, a further rise in premium gets restricted or coverage for seniors will become impossible.

In the coming years, health insurance cost could rise by another 15- 20 per cent for individuals.

Public sector companies' projected increase would be 25- 30 per cent.

In such a scenario, how to cut your rising health insurance cost? Here are a few ways: Opt for a family floater

If a family needs to be covered, opting for a family floater could be cheaper than individual plans for each member.

Younger families (where the senior most member is below 45 years) should opt for family floaters, as the price is based on the age of the senior most family member. Higher the age of the oldest member, more the premium.

Also, utilisation of family plans is higher than individual plans, each of which might not get used. With Bajaj Allianz Health Guard Family Floater, a 10 lakh policy for a family of four ( self, spouse and two children) costs 21,826 plus service tax ( eldest family member between 26 and 40 years).

Typically, two adults ( oneself and the spouse) and two children are covered in a floater policy; parents and siblings are not. A few companies like Oriental India Insurance (Happy Family Floater) also offer cover for parents also. Max Bupa's family floater covers up to 13 relations.

"One can look to be covered under very basic plans like a critical illness, personal accident and hospital cash covers, which are cheaper than a comprehensive cover but provide only conditional coverage," says Mishra. Of course, these covers are no substitute for a comprehensive insurance.

Opt for two-year policies

Insurers Apollo Munich, HDFC Ergo, Star Health offer  two- year health plans. Chances are you will benefit on more than just the premium front. Health insurance policies are annual contracts. HDFC Ergo's two- year 'Health Suraksha' helps you save 4,469 of premium for a 4 lakh policy for a 30- year period. A one- year policy would cost 5,587, whereas a two- year policy would cost 10,056.

Use top ups for higher cover

Say you want a cover of 5 lakh. Buy a standalone policy offering sum assured of 1 lakh or 2 lakh and buy atop- up of the remaining 4- 5 lakh, chief executive officer of Bharti AXA General Insurance.

This structure will be significantly cheaper than increasing the base insurance. Such plans get triggered only after you have exhausted your base cover. A 2 lakh standalone policy with HDFC Ergo's Health Suraksha and a 4 lakh top- up will cost you 5,577 ( 3,217 + 2,360). Whereas a 5 lakh standalone cover will cost you 7,254.

Check deductibles & sub limits

Customers can opt for voluntary deductible policy, The main aim behind such plans is for bigger claims to be paid by the insurer. Based on their paying capacity, policyholders pay smaller claims from their pocket, thus cutting the insurer's and their own cost.

Bajaj Allianz's product offers a 10 per cent discount in premium if you choose a voluntary deductible — amount you have to shell out before the insurer pays up — of 10,000.

Similarly, a policyholder could opt for sub- limits for non- life threatening diseases ( hernia, appendicitis, knee replacement) and no sub- limits on critical illnesses ( cancer, stroke). In case of non- life threatening illnesses, you could go to smaller hospitals or be ready to pay from your pocket if the bill exceeds the sublimit.

Checking all the benefits available and lowering higher sub- limits if not required. For instance, say a policy offers room rent of 20,000. You may lower it to 10,000, as there's no need for such a high room rent.

No claims benefit

Policyholders should check for no claims benefit in their health plans.

If this is unavailable, shift or port to another plan offering it. Unlike motor insurance, where non- claims bonus can be used to lower renewal premium.

No- claims can only increase coverage in health insurance.

Customers covered under group health insurance from employers can port to individual policies of the same company at the time of changing jobs. This way they can get the no claims benefit, by way of higher sum assured on the individual plan. But they must remember that while porting, they will not get a mirror policy of the group scheme. They will only get what is available in the individual plan. For instance, maternity covers are typically not included in individual policies.

Buy online

Some companies offer online health cover, like Bajaj Allianz, HDFC Ergo and Apollo Munich, which are cheaper than offline plans. Online policies are available at a 10 per cent discount to offline plans.

Ways to cut expenses Saving

Two- year policy, instead of annual plans 25- 30% A mix of standalone and top- up plans 20- 25% Opting for sub- limits and higher deductibles 10- 30% Buying health insurance plans online 10% Use no- claim history 20- 25% rise on sum assured

For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap FundsInvest Online

      1. DSP BlackRock MicroCap Fund

2.Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

FCCB buyback

WITH dismal share valuations causing bondholders to redeem, and not convert their foreign currency convertible bonds ( FCCBs ), which until early this year were regarded as one of the most preferred options for raising corporate debt, suddenly seem to have become millstones around the necks of issuers. It is the redemption pressure on cash-starved issuers, coupled with the need to preserve liquidity by mitigating further forex outflow, which seems to have prompted the Reserve Bank of India ( RBI ) to issue the circular permitting buyback of FCCBs. As per the circular, issuers can now buyback FCCBs under the automatic route up to any limit out of existing foreign resources or by raising fresh external commercial borrowings (ECBs,) if effected at a minimum discount of 15% on the book value. Further, FCCBs up to $50 million can be bought back with prior RBI approval out of rupee resources representing “internal accruals”, if effected at a minimum discount of 25% on the book value. I...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now