Be wise, Health Insurance wise

In the first blog, we looked at how Room rent capping is not the right way to reduce our health insurance premium. Now let us look see how we can use “Deductible” to reduce insurance premiums. Let us be wise, health insurance wise.

Deductible – According to IRDAI “Deductible is a cost-sharing requirement under a health insurance policy that provides that the insurer will not be liable for a specified rupee amount in case of indemnity policies and for a specified number of days/hours in case of hospital cash policies which will apply before any benefits are payable by the insurer. A deductible does not reduce the Sum Insured.”

Firstly, from the definition of deductible, it’s easy for us to understand that the higher the deductible, the lower the premium. Right? So how do we use this to our advantage?

Now this is the trick, have a:

Base policy with no deductible worth X coverage – costly policy
Adjunct policy with a deductible of X and a coverage of up to say 1 Cr – cheaper policy

Together these two policies help you cover your life and family’s life very well. This will essentially be cheaper than having one policy with no deductible, but total health cover of 1 Cr.

Now the trick does not stop here. You are working in a company that covers you and your family without a deductible. If you are short of cash and would not like to pay a premium because you are young, you can buy just the adjunct policy. After you reach a comfortable stage in life, you can get the Deductible reduced in the adjunct policy or buy a base policy.

Finally, this combination helps you increase your family’s cover for a smaller premium. So Be Wise, Health Insurance Wise 🙂