Are high health insurance premiums burning a hole in your pocket? Put an end to your woes with some quick-fix tips for premium loading!
Health insurance premiums may skyrocket due to multiple factors. As we know, some of these, such as diseases and accidents are beyond our control. With sensible planning and lifestyle modifications, you can minimise your premium loading. However, many policyholders do not know what premium loading is. So don’t just settle with what your insurance provider offers you!
What is premium loading?
Premium is the cost you pay for availing any form of insurance. It is a kind of liability, which ensures that you will be entitled to the claims that have been made. Loading is the amount charged by the health insurance company on your premium because of your medical condition. This loading is an additional cost to cover a ‘risky’ individual (a person whose chances to claim are frequent). Almost all health insurance companies include loading in their policies. The insurer does this to compensate expenses of insuring a policyholder, who is likely to make more claims.
For example, 55 years old Gaurav and Rohit plans to buy a health insurance policy worth Rs. 5 lacs for themselves. At the time of buying the policy, Rohit’s medical test revealed that he has high blood pressure while Gaurav is diagnosed to be healthy. Thus, when compared to Gaurav, who pays Rs. 15,000 for the coverage Rohit pays Rs. 3000 additional i.e. Rs. 18,000 because of premium loading.
How to fix the issue of premium loading?
The answer to this question is listed below:
Buy when you are young
Buy health policies when you are young and healthy. Younger people have lower risks of diseases and illnesses. As a result, the likelihood of claiming will be less. On the other hand, an individual over 40 would be susceptible to cardiovascular issues, diabetes, diabetic problems, etc. Premiums offered by health insurance companies are thus lower for younger people and increases as you grow old.
Purchase a policy when healthy
Just recovered from a serious illness or had a surgery recently? Then that is not the best time to buy a health insurance policy. Most insurance companies have a pre-policy medical check-up which considers your current medical conditions. So wait for a few months or a year. Hopefully, the traces of illnesses would have cleared up from your system by then.
Maintain good health
WHO research reveals a drastic result in obesity levels across the globe. With sedate lifestyle and sitting jobs, weight gain is always on the cards! Eat nutritious and fresh foods and exercise regularly to stay healthy even if you don’t plan to buy a policy.
Healthy is happy! They say that a healthy mind is a secret to a healthy body and it can also help you get better premium rates.
Go for regular check-ups
Preventive health check-up helps in early diagnosis of diseases and thus ensures easy and successful treatment. Health insurance comp
Change your lifestyle
Seven to eight hours of sleep is a must. Don’t indulge in smoking and drinking as they increase the risk of health problems. Try to reduce stress by having positive thoughts.
Choose the right coverage
Health insurance companies avoid covering individuals with pre-existing conditions. This applies to people with larger health risks or those belonging to dangerous professions, in a floater. So if you are considering a family floater policy, choose a separate or individual plan for these members.
Renew policies without break
Renewal of policies without a break ensures that you get added benefits. These include perks, bonus points, free check-ups, etc. It’s best to apply for renewal a week or two in advance.
These are simple but effective fixes that reduce premium-loading risks. You can still avail broader coverage with lower premiums. So choose sensibly!