As the cloud of uncertainty looms over people across Indian cities owing to pollution and other health hazards, it is imperative not just to secure health and also ensure financial stability. After all, as the saying goes, health is wealth. But due to a lack of awareness, many people make the mistake of dismissing the need for health insurance.

Health insurance is a critical investment. However, it hardly means it has to cost a bomb — most certainly not if you know some feasible ways to make it affordable without compromising protection. Here are some practical tips to help save on premium without compromising on your essential needs.

Compare prices online

Compare health insurance plans and choose the right plan for yourself. Use online tools to evaluate prices, features and network hospitals. Remember, different insurers price the same risk differently. For instance, a slightly higher premium plan with an extensive hospital network might suit you better during emergencies.

Also, do not hesitate to reach out to a financial advisor who is equipped to give you the right advice.

Keep an eye on your CIBIL score. Yes, you read that right. A high score can fetch discounts on premiums, as insurers consider you to be a lower-risk customer. A good financial history not only lowers EMI payments but can also cut premiums by up to 15 per cent. It’s an easy way to save money, especially if you already manage your finances well. It’s a mutually beneficial deal for both the parties.

Premiums into EMIs

If paying the entire premium upfront is difficult, consider EMI options offered by many insurers. For example, instead of paying ₹20,000 annually, you could opt for monthly payments of about ₹1,600. This makes it easier on budget while allowing you to choose a more comprehensive plan that might otherwise feel out of reach. EMIs are a popular payment option for almost anything today, make the most of it to get the health insurance policy you want.

Save via modular plans

New-age modular plans let you save considerably by customising your plan as per your needs. Consider opting for a deductible or co-pay. This means you’ll pay out-of-pocket during claims, but your premium will be lower. If you’re healthy and don’t foresee frequent hospital visits, this can be a cost-effective choice. It’s a smart way to save in the long term while staying prepared for unforeseen events. This makes sense to even senior citizens who might face higher premiums. For instance, you opt for a ₹25,000 deductible and get a 25 per cent discount for a premium of ₹50,000, so you end up saving ₹12,500. Now, if you don’t claim for two years, you have already saved ₹25,000 on account of lower premium. This also applies to customers who have a corporate health insurance policy. Also, if you opt for a hospital in your insurer’s preferred partner network, you stand to save up to 15 per cent in premiums.

Cumulative bonuses

Cumulative bonus lets you increase your sum insured even if you end up making a claim during the policy year. This is different from NCB or no claims bonus that rewards you for not making a claim. Over time, this can significantly enhance your coverage while keeping costs steady. Let’s say you have a sum insured of ₹10 lakh and gain a 10 per cent cumulative bonus every year. In 10 years, the cumulative bonus of ₹10 lakh can potentially be accumulated and make the sum insured just double.

Buy early

Purchasing health insurance early in life is a wise decision. Policies are cheaper when you’re younger and healthier, and you lock in age for the future. It also ensures coverage before any health issues arise, which could otherwise lead to higher premiums. Not to forget, some insurers apply risk-based loading, especially in case of adverse medical history. This is something you can easily avoid if you buy while you’re young and healthy in early years.

Also, this is where something called wellness benefit kicks in. You stay healthy and fit, meet the insurer’s criteria and get up to 100 per cent discount upon renewal. You can make the most of this feature if you opt for a plan early in life.

By keeping these simple tips in mind, you can make health insurance more affordable without compromising on quality. Affordable doesn’t mean settling for less; it means making smart choices that align your needs and budget.

(The writer is head, health insurance, Policybazaar.com)