In India, out-of-pocket expenses can run considerably high. Economic Survey 2022-23 illustrates that about half of the healthcare expenditure in India is out of pocket. While this has declined in recent years after awareness around health insurance grew due to the pandemic, the numbers are still painstakingly high compared to the global average. Often, consumers see health insurance as an expense that they don’t need to incur. That is – until they end up spending a lot more on medical bills than they would have on the premium. This is especially true for the younger consumer segment.
However, the last few years have demonstrated that no age is immune to health exigencies, and everyone needs sound health coverage to financially protect themselves. Now, coming to spending on the premium part, the health insurance ecosystem is constantly evolving to fit into consumer needs – that includes being cost-effective. Did you know that by staying healthy, you can get up to 100% of your premium waived off at the time of renewal? That’s not all. Let’s detail out more such benefits that ensure cost-effectiveness in your health insurance policy-
Assuming you are a 30-year-old living in one of the metro cities and have no pre-existing illnesses, your annual premium for a sum assured of Rs 10 lakhs will come to an average of Rs 10,000.
Here’s a quick snapshot of how you can bring down your premium by 50-90% with new-age benefits –
Now, let’s analyse the new-age features tailored to your requirements and health profile that make your policy more cost-effective –
Savings on doctor consultation
Whether we like it or not, given the recent rise in health issues, doctor visits have become an inescapable part of our lives. It could be anything minor or something more serious, but you need to consult a doctor to be sure. Even at a minimum, an average person of the profile mentioned above is likely to spend anywhere from Rs 1500-2000 annually on doctor visits. However, if they opt for a plan that covers OPD expenses including doctor consultations, they are adequately covered on that front even if the consultation expense shoots up during the policy term.
Tax-savings
Tax rebates have historically been a motivation for consumers to opt for insurance. Health insurance, too, comes with the benefit of a tax rebate under section 80D. By furnishing the proof of premium paid towards your health insurance policy, one stands to save up to a maximum of Rs 25,000 for self, spouse and dependent children. In addition to this, if you pay a premium for both senior citizen parents, the maximum limit allowed for deduction is Rs 50,000. If a senior citizen pays a premium for their senior citizen parents, the total deduction limit further goes up to Rs 10,00,000. A penny saved is a penny earned, so saving in taxes directly adds to your earnings.
Wellness benefits
Health insurance is not only for the sick or the elderly; it caters to everyone, including young and healthy consumers. Wonder why? The feature of wellness benefits in health insurance policy rewards the policyholder for staying fit and healthy. It could be through app monitoring, tracking steps or keeping a tab of physical activity. If policyholders meet the benchmark set by their insurers, they are eligible for these benefits. It could be in the form of a discount on renewal, redeemable vouchers, or reward points for health check-ups. In fact, you could even get a 100% discount on the premium at the time of renewal if you meet the required fitness criteria.
Early bird benefits
Young consumers often push back the decision of buying health insurance. However, it pays to buy early, quite literally. If you purchase health insurance before turning 35, many insurers allow a discount on premium upon the renewal of your policy. Young consumers are generally healthier and help keep the cumulative risk at bay, which is why insurance companies promote buying early for consumers and reward them with such benefits. This, in turn, makes your health plan even more cost-effective.
Savings on annual health check-ups
After the pandemic, preventive healthcare has gained momentum and people want to make sure they nip the health issue in the bud before it turns serious. So, before a health emergency strikes, people take preventive measures like a healthy lifestyle and regular health check-ups to make sure nothing untoward happens. An average person spends around Rs 2500 on health check-ups yearly. Health insurance plans now also cover annual health check-ups with coverage of Rs 2500-5000 which further brings down your actual cost of the plan and also helps keep a tab on your health.
-The author is business head, health insurance, Policybazaar.com.
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