10 Smart Ways to Save Money on Individual Health Insurance Premiums

Udaipur, April 18, 2025: Individual health insurance is a vital financial safeguard, offering crucial protection against medical expenses. However, rising premium costs often discourage individuals from purchasing or renewing policies. Fortunately, there are several proven strategies that can help reduce health insurance premiums without compromising on coverage. This article highlights 10 smart ways to make your health insurance more affordable while still ensuring robust protection.

Why Saving on Health Insurance Premiums Matters

Healthcare expenses in India are on the rise, making health insurance an essential financial product. But for many, the cost of individual health insurance remains a deterrent. By making informed choices—such as choosing the right policy, maintaining a healthy lifestyle, and leveraging tax benefits—you can significantly reduce premium outflows.

1. Compare Multiple Plans Before Buying

Comparing policies from various insurers helps identify plans with the best balance between premium costs and benefits. Since insurers differ in pricing, features, exclusions, and claim settlement practices, reviewing at least three to five options ensures better decision-making. Online comparison platforms and insurance advisors can simplify this process.

2. Opt for a Higher Deductible

A deductible is the amount you must pay out-of-pocket before the insurer covers your medical costs. Choosing a higher deductible often leads to a lower premium. This option is ideal for people who are confident in their ability to manage smaller medical bills and want protection against major hospitalisations.

3. Choose the Right Sum Insured

It’s important to select a sum insured based on your age, family medical history, and expected healthcare expenses. While higher coverage provides more security, it also comes with increased premiums. Over-insuring may lead to unnecessary spending. Finding a middle ground ensures adequate protection without financial strain.

4. Take Advantage of Discounts and Offers

Insurers offer various discounts that can reduce premium payments:

• Multi-member discounts for insuring family members under one policy.
• No-claim bonuses (NCBs) for years without filing a claim.
• Long-term discounts when choosing a two- or three-year policy over annual renewal.

Checking for these offers at the time of purchase or renewal can lead to meaningful savings.

5. Maintain a Healthy Lifestyle

Your personal health directly affects your insurance premium. Non-smokers and those with no chronic illnesses typically receive better premium rates. Regular exercise, a nutritious diet, and routine health screenings help minimise risks and make you a favourable candidate for lower-cost insurance.

6. Choose Network Hospitals for Cashless Benefits

Selecting a health insurance provider with an extensive hospital network gives you access to cashless treatment. This reduces your upfront expenses and paperwork burden. Additionally, some insurers offer special discounts for using preferred hospitals, making treatment more affordable.

7. Buy Health Insurance Early

Buying individual health insurance at a younger age has two major advantages: lower premiums and reduced risk of claim rejections due to pre-existing illnesses. Early purchase also helps you complete waiting periods for certain ailments while you're still healthy.

8. Use Tax Benefits to your Advantage

Premiums paid towards health insurance are eligible for tax deductions under Section 80D of the Income Tax Act. You can claim:

• Up to Rs. 25,000 for self, spouse, and children.
• An additional Rs. 25,000 (or Rs. 50,000 if a senior citizen) for insuring parents.

Though not a direct premium reduction, these deductions reduce your taxable income, effectively lowering your overall insurance cost.

9. Consider top-up plans

Top-up health insurance plans are designed to provide additional coverage once the base policy’s sum insured is exhausted. They are significantly cheaper than buying a high-cover base plan and are ideal for individuals looking for extensive protection on a tight budget.

10. Evaluate policies regularly

Health needs change with time. Reviewing your policy annually helps ensure that you are not paying for outdated or redundant coverage. Policy portability also allows you to switch to a more cost-effective insurer if better options become available. Avoid automatic renewals without assessing your current health requirements and financial goals.

Tips for saving on health insurance in Bangalore

For residents of Bangalore—a city known for its advanced but expensive healthcare infrastructure—choosing the right health insurance becomes even more crucial. Here’s how to optimise your policy if you’re based there:

• Opt for insurers with wide hospital networks in Bangalore to ensure cashless claims during emergencies.
• Look for plans covering OPD and daycare procedures, as these are common due to the city’s specialised clinics and diagnostic centres.
• Use wellness-linked plans, especially those tied to local gyms or health partners in the city.

Conclusion

Saving money on individual health insurance does not mean cutting corners on quality or coverage. From early enrolment and healthy living to choosing top-up plans and utilising tax benefits, there are several legitimate ways to keep your premiums affordable. By staying informed and proactive, you can ensure you get the best value from your policy while maintaining essential medical protection.