Considering the rising healthcare costs in India, it is necessary to purchase a health insurance policy to tackle medical expenses, especially for parents or senior members. For that, you must pay a monthly premium to keep your policy active, which enables you to get coverage during medical emergencies.
However, the premium amount may rise unnecessarily if you don’t adopt the right strategies. In this regard, healthy lifestyle habits are one of the crucial factors that can lower your health insurance premium cost and overall expenses.
Keep reading to learn more about the best habits to reduce health insurance premiums!
What are the Factors Affecting Your Health Insurance Premium?
For effective cost control, policyholders must know the factors that an insurance company considers while calculating health insurance premiums. Here are some of them:
- Age and Medical History
When calculating the health insurance premium, insurers consider the policyholder’s age and medical history. Senior citizens and individuals with chronic illnesses are considered a high-risk profile, as their conditions increase the chances of an insurance claim. Thus, the premium amount for such policyholders is higher than that for younger individuals.
- Lifestyle Choices
Lifestyle habits such as excessive drinking, smoking, and inactive living increase health risks. Therefore, individuals with such living habits attract higher health insurance premiums. Insurers enquire about the lifestyle habits of policyholders frequently during the application and renewal procedures to assess such factors.
- Sum Insured and Policy Type
If you choose a higher sum insured or comprehensive health insurance for parents and other family members, you need to pay a higher premium. On the other hand, a basic health insurance plan or family floater options are cost-effective.
- Claim History
Policyholders who frequently claim health insurance, even for minor medical issues, need to pay a higher premium. On the other hand, policies that have a record of fewer claims can avail discounts on premiums and the benefits of the No Claim Bonus.
- Health Habits and Wellness Tracking
Insurance companies also consider the wellness scores of policyholders to decide the premium amount. This can be tracked by using digital apps or health devices. Policyholders with higher wellness scores are often rewarded with lower premiums or discounts.
Healthy Lifestyle Habits That Help Lower Your Insurance Premium
Policyholders can adopt the following long-term habits to reduce health insurance premiums:
- Maintain a Healthy Weight
Individuals suffering from obesity or being overweight often develop health conditions like hypertension and diabetes. Insurers frequently check the BMI (Body Mass Index) to assess weight-related risk factors of applicants when calculating the premium amount. A healthy BMI reduces the risk of insurance claims, thereby lowering insurance premiums.
- Avoid Smoking and Limit Alcohol Consumption
Policyholders with habits of smoking or drinking are considered a high-risk profile, as they may develop chronic illnesses like cancer, cardiac issues, liver disorders, etc. This increases their health insurance premium.
Thus, individuals who want to reduce their health insurance premiums should quit smoking and drinking and adopt a healthier lifestyle.
- Prioritise Regular Health Check-ups
Regular medical check-ups help detect diseases at their early stages. This improves the chances of a cure, and insurers offer wellness-linked premium reductions to the policyholders.
- Eat a Balanced, Nutrient-Rich Diet
A balanced diet includes fruits, vegetables, whole grains, and lean proteins to support long-term health. Individuals with such a diet have lower risks of diseases. Thus, they can secure lower health insurance premiums for longer periods.
- Manage Stress and Sleep Well
Individuals suffering from sleep deprivation or chronic stress may develop cardiovascular diseases or issues related to their mental health. Such individuals are considered high-risk profiles and are therefore subject to higher insurance premiums.
- Stay Physically Active
Regular exercise lowers the risk of most lifestyle diseases, including diabetes and hypertension. Maintaining activity helps lower health insurance costs. This tip can be especially beneficial for those insuring their aged parents, who may be at greater risk.
Smart Financial & Policy Habits to Keep Health Insurance Premiums Low
Apart from lifestyle, your insurance-related decisions also help manage long-term costs. Here are some smart habits to lower your health insurance premiums:
- Buy Early and Stay Insured Continuously
Purchasing a health insurance policy early in life, ideally in one’s 20s or 30s, helps lock in lower premiums. Those who purchase health insurance at an older age often face a higher risk of certain diseases and are required to pay a higher premium. Continuous coverage usually brings loyalty discounts.
- Opt for a Higher Deductible or Co-pay Option
Choosing policies with higher deductibles or copayments can reduce your annual premium, although you will share a greater portion of the treatment costs.
- Use No Claim Bonus (NCB) Effectively
NCB offers premium discounts or additional coverage as a reward for years without claims. Paying for minor expenses out-of-pocket and avoiding claims maximises these advantages.
- Compare and Renew Smartly
Regularly comparing plans during renewal ensures you don’t overpay for outdated benefits. Switch policies only when the new insurer offers demonstrable savings and better cover.
- Choose Family Floater Wisely
Family floater plans are economical for insuring multiple members, including parents, as premiums are pooled, thereby reducing the overall cost for each individual.
Wellness Programmes & Discounts to Reduce Insurance Premiums
Modern insurers reward healthy behaviour and engagement in wellness programmes with lower insurance premiums. They may include:
- Insurer Wellness Programs
Participating in insurer-led wellness activities, such as yoga camps, step challenges, and digital tracking, often leads to direct premium discounts and rewards.
- Corporate Wellness Incentives
If your company offers group health coverage, you may be eligible for lower premiums and wellness-linked incentives, such as gym memberships or diet plans.
- Digital Health Platforms
Using apps and health platforms to track daily habits, such as sleep, exercise, and diet, helps insurers offer tailored discounts based on real-time data.
Avoiding Habits that Increase Health Insurance Costs
The following are some behaviours that can unexpectedly drive up your health insurance premiums:
- Skipping Regular Health Checks
Ignoring preventive healthcare can lead to undiagnosed conditions, higher claims, and eventual premium increases at renewal.
- Hiding Pre-existing Conditions
Concealing health issues during the application process could invalidate claims or result in higher premiums upon discovery.
- Inconsistent Lifestyle
Frequent changes in health habits, such as gaining or losing weight, starting or quitting smoking, etc., may lead to erratic premium adjustments.
- Frequent Policy Switching
Changing insurers every year may lead to a loss of continuity benefits, such as NCB or policy loyalty discounts.
How do Insurers Reward Healthy Policyholders?
Good habits and low-risk behaviour earn valuable rewards from insurers. Here are some of them:
- No Claim Bonuses (NCB)
For each claim-free year, insurers offer increased coverage or reduced renewal premiums, incentivising health-conscious behaviour.
- Wellness-linked Discounts
Submitting proof of healthy living activities (regular check-ups, diet adherence, fitness milestones, etc.) helps avail cashback and discount incentives on renewal premiums.
- Lower Loading Charges
Healthy individuals, especially those without chronic disease or risky habits, receive lower loading (extra premium) during renewals.
- Health Check Coverage
Insurers cover the cost of preventive health check-ups, which reduces your out-of-pocket spending and encourages regular screenings.
Reducing your health insurance premium in the long term is not just about finding the cheapest policy. It’s about adopting lifelong habits that include optimising your health, improving your financial decisions, and taking full advantage of insurer programmes and rewards. From managing your diet to utilising NCB benefits, buying insurance early, and maintaining transparent policy records, every mindful step keeps your premiums in check.
