11 Tips to Reduce Your Health Insurance Premiums

Buy at a Younger Age

Age is one of the most significant factors that influence your premium. The younger you are, the lower your risk profile. That means:

• Lower chances of pre-existing diseases.
• Reduced probability of hospitalisation.
• Smaller claim amounts.

Buying early helps you lock in lower health insurance rates and maintain those lower health insurance premiums for longer.

Tip : Encourage your children to buy their policies in their 20s. Even ₹5–7 lakh coverage can be highly affordable.

Opt for a Higher Deductible

A deductible is the amount you agree to pay out of pocket before the insurer steps in. By choosing a higher voluntary deductible, you lower the insurer’s liability, and in return, you get reduced premiums.

This strategy works well for those who:

• They are financially stable.
• Rarely fall ill.
• You are looking for a backup for catastrophic emergencies.

Important : Don’t confuse deductibles with co-payment clauses. Deductibles are one-time per claim, while co-payments apply to every bill.

Choose a Family Floater Plan

If you’re insuring your entire family, a family floater health insurance policy is more economical than buying individual policies.

Advantages:

• Shared sum insured for all members.
• Lower combined premium.
• Easier management (one renewal date, one policy number).

Floater plans are ideal if all members are relatively healthy. However, if one member is elderly or ill, compare whether a separate plan for them is more cost-effective.

Maintain a Healthy Lifestyle

Leading a healthy life reduces your risk profile in the eyes of the insurer. Many insurers even offer wellness discounts on renewal if you meet their fitness goals.

Steps to take:

• Maintain a healthy BMI.
• Avoid smoking or excessive alcohol consumption.
• Exercise regularly.
• Monitor lifestyle conditions like blood pressure, cholesterol, or diabetes

Bonus Tip : Some insurers offer incentives like reward points or premium discounts if you link wearable fitness devices with their app.

Go for Long-Term Policies

Instead of renewing your policy annually, opt for long-term health insurance policies (2–3 years). Many insurers offer discounts of up to 10% for multi-year premiums.

If you're wondering, does health insurance premiums lower taxable income? You’ll be glad that premiums paid for yourself and your family can qualify for tax deductions.

Benefits :

• Lock in the current premium rate.
• Avoid annual hikes.
• Enjoy better policy continuity.

Pro Tip : If you can afford it, pay the premium upfront for three years and enjoy a better deal overall.

Use No-Claim Bonus (NCB) Wisely

A No-Claim Bonus (NCB) is a reward for not making any claims during a policy year. It usually comes in two forms:

• Increased sum insured at the same premium.
• Discounted premium for the same sum insured.

Over time, NCB can help you get up to 100% additional coverage at no extra cost.

Smart move : Avoid making small claims (e.g., ₹2,000–3,000) that can cancel your NCB, which is worth lakhs in increased coverage

Compare Plans Before Buying

One of the biggest mistakes people make is buying the first policy. Always compare policies on features like:

• Premium vs. coverage.
• Room rent limits.
• Network hospitals.
• Waiting periods.
• Add-ons and exclusions.

Compare using aggregator platforms and official insurer websites. Look for value, not just low monthly premium health insurance.

Read more: How to Calculate Health Insurance Premium.

Avoid Riders You Don’t Need

Riders or add-ons enhance your policy but come at a cost. Some common ones include:

Difference

• Maternity cover.
• Critical illness cover.
• OPD expenses
• Personal accident cover.

While useful, not all riders are necessary for everyone. If you’re single, you may not need maternity. If you have employer critical illness cover, skip that rider here.

Strategy : Buy a base plan first, then only opt for riders after evaluating your needs.

Look for Group or Corporate Coverage

If your employer offers group health insurance, it typically comes at no cost or a very low cost, and there are no pre-policy health checks.

Benefits of corporate/group insurance:

• Lower premiums or employer-funded premiums.
• More exhaustive coverage for family members.
• Coverage despite pre-existing diseases.

However, these policies end when you leave the job. So, use group insurance as a support, not a substitute for your policy.

Explore : Some professional associations, cooperative societies, or resident welfare associations (RWAs) offer group plans—check if you qualify.

Choose Daycare & Network Hospital Focused Plans

Instead of opting for broad coverage, go for focused plans that provide:

• Strong daycare procedure coverage.
• Cashless hospitalisation in a vast network.

Such plans offer better control over hospital costs. Network hospitals usually charge less because of pre-agreed rates with insurers, which can help lower health insurance premiums over time.

Note : Look for Plans with an extensive hospital network near your area and coverage for common daycare treatments (like cataract surgery, tonsillectomy, etc.).

Declare Pre-Existing Diseases Honestly

While it might seem tempting to hide pre-existing diseases to get a lower premium, this can cost you dearly. If discovered during a claim, your request can be denied entirely.

Being transparent ensures:

• Proper underwriting and reduced rejection chances.
• Faster claim settlement.
• Long-term trust and coverage continuity.

Insurers may initially charge slightly more or impose waiting periods, but that’s better than claim denial or policy termination.

Tip : Some insurers offer lower health insurance premiums if you pass their medical underwriting, even with a minor pre-existing condition.

Age and Health Condition

• Older individuals attract higher premiums
• Smokers and people with chronic conditions pay more.
• Pre-policy medical checkups can influence pricing.

Policy Tenure

• Multi-year policies offer discounts (usually 5–10%).
• Longer tenures mean more commitment, so insurers incentivise it.

Coverage Type and Add-ons

• Individual or floater coverage.
• Sum insured: Higher cover = higher premium.
• Add-ons like critical illness or maternity increase the cost.
• Room rent limits, co-payment clauses, and deductibles also affect pricing.

Use a calculator to understand the effect of these parameters.