How to reduce your health insurance premium if you already have an employer-sponsored health insurance plan?

Reduce your personal health insurance premium if you have an employer-sponsored plan!

Reduce your personal health insurance premium

The healthcare costs in India are increasing. Because of the rising costs, many employees prefer not to buy a personal health insurance plan. They continue with their employer-sponsored plan. But this is not a good idea. Although you can save money in the short term, in the long term, this is not a good idea. What you can do is reduce your personal health insurance plan premiums if you already have an employer-sponsored plan.

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Opt for top up plans?

Even if you have a group health insurance plan, you should opt for a top-up plan to help you meet your medical expenses. The advantages of top-up plans are:-

  1. Additional sum assured- The sum assured increases with the top-up plan, and it is over and above the base employer-sponsored plan.
  2. Cheaper- As the deductible is very high on top-up plans, the premium is very low for the top-up plans. Depending on the deductible and the age, these plans start from Rs 70 a month and can go up to Rs 500 per month for 30-year-olds. Some higher plans may be pricier depending on the deductible and illness cover. 
  3. A higher deductible is not a concern- When you have a small medical procedure like a hernia or cataract, you can use your base plan because of the low deductible. But if your expenses are very high, you can use the top-up plan along with the deductible. Therefore, the high deductible of the top-up plan is not a concern.

Types of Health Insurance top-up plans

There are various types of top-up plans like:-

  1. Standard top-up plan- The deductible is applied to each and every claim.
  2. Super top-up plan- The aggregate deductibles in a policy year is used to get the deductible amount. For example, if you have two procedures of Rs 3 Lakhs each and the deductible is Rs 4 Lakhs. In the standard top-up plan, you will get no money from the policy. But in the case of a super top-up plan, you will get Rs 2 Lakhs. 
  3. Group Top-Up plan- In the group top-up plan, you can immediately increase your sum assured by paying some extra premium over and above the employer-sponsored base plan. The disadvantage is that this plan is linked to your employment with the firm.
  4. Affinity top-up plan- These plans are launched by platforms which pool in the insurance of several people, just like a group health insurance plan. The advantage is that this plan is not dependent on employment with the firm. 
  5. Critical illness cover only- This is used if you need extra money in the case of critical illness. This ensures that even if your livelihood is impacted, you will get some money to maintain your expenses. 

Related: Difference between insurance agent and insurance broker

With the help of top-up plans, you can reduce your health insurance premiums. You can increase your insurance amount on top of the group health insurance. Apart from group health insurance, you should also have individual insurance. If you select the correct top-up insurance plan, you can make full use of the lower premiums and higher sum assured. Here's what you should know about Group health insurance Vs Individual health insurance

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