With the rising average lifespan, the investment in health insurance plans has also increased. A health insurance plan proves invaluable when an insured individual faces severe illness and cannot cover medical expenses. However, acquiring health insurance can be costly due to the extensive benefits it provides. If you are looking for ways to lower your health insurance expenses, consider the following suggestions:

Tips to Reduce Health Insurance Costs

1. Start Investing in an Insurance Plan Early
   While many individuals may prefer to invest in health insurance in their late 30s, it is advisable to secure a plan while still young. The younger you are, the better deal you can obtain. This provides two advantages: extensive coverage and savings on premium costs.
2. Cumulative Bonus
   Maintaining a healthy lifestyle helps prevent illnesses and reduces hospitalization expenses. A year without claims rewards you with benefits in the form of a Cumulative Bonus (CB), leading to lower overall insurance costs.
3. Choose Coverage Based on Family Needs
   The insurance coverage should cater to both you and your family’s needs. If you do not plan to expand your family, exclude maternity coverage to save on additional costs. Selecting only necessary features ensures affordability.
4. Utilize Tax Benefits
   Tax-saving benefits significantly reduce health insurance expenses. Under Section 80C of the Income Tax Act, 1961, health insurance premiums are deductible up to INR 1.5 lakh, offering financial relief while securing health coverage.
5. Choose Higher Deductibles
   Opting for a higher deductible decreases premium costs. A higher deductible helps in situations where you need financial support for severe illnesses while allowing you to save more. For example, the Bajaj Allianz ‘Extra Care’ or ‘Extra Care Plus’ policy offers such benefits. However, be mindful that you will need to pay the initial deductibles as specified in your contract before accessing co-insurance benefits.
6. Choose Cashless Settlement
   Selecting network hospitals that offer cashless settlement can significantly lower health insurance costs. Under this option, the insurance company covers hospitalization expenses directly. The policyholder only needs to inform the insurer about hospitalization, and the company will manage the expenses up to a predefined limit. Bajaj Allianz General Insurance provides such cashless settlement benefits, making it a worthwhile investment.

By following these strategies, you can effectively reduce your health insurance costs while ensuring comprehensive medical coverage.