7 Ways To Reduce Your Health Insurance Premiums In 2021

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7 Ways To Reduce Your Health Insurance Premiums In 2021

If there’s one thing we can learn from 2020, it’s that we shouldn’t take our health for granted. With the ongoing pandemic, increasing chronic diseases, and rising healthcare costs, health insurance has turned into a necessity. Securing private health insurance ensures you’ll have the right financial support when you really need it. However, many people neglect to purchase health insurance due to the high premiums set by insurance providers.

Written exclusively for Expat Network by Pacific Prime UK

A smart policyholder doesn’t just buy a plan and leave it. If you’re looking for ways to lower your health insurance premium, some small changes can make a huge difference. This article from our friends at Pacific Prime offers 7 ways to reduce health insurance costs in 2021.

How to lower health insurance premiums

A health insurance premium is the amount a policyholder pays to receive medical coverage and insurance benefits. It’s basically the amount you pay to keep your insurance policy active. But premiums can be costly, especially if you’re paying for more than you need. Here are some ways to lower your premium without compromising on coverage.

1. Buy a policy at an early age

One of the key factors that’ll affect your health insurance premium is age. The older you are, the higher your chances of being affected by health issues and conditions. That’s why insurance providers increase insurance premiums as a person gets older. Getting a health insurance policy when you are still young and healthy means you’ll be able to get a better deal on premiums.

2. Select the right sum assured

Choosing the right sum assured is crucial for any policyholder. If you go with a higher amount of sum assured than your actual requirements, you’ll be paying extra on premium for no reason. On the other hand, if your sum assured is too low, then you won’t get enough coverage and will have to pay for some medical expenses out of pocket. Therefore, it’s important to choose the right sum assured according to your age and health status.

3. Opt for deductibles

A deductible is the amount you pay out of pocket before your insurance provider starts to pay. Some health insurance providers give you the option of choosing deductibles voluntarily, which can help lower health insurance premiums. However, you’ll have to compare health insurance plans to find policies with this option as well as choose the right amount of deductible.

4. Go for a family floater plan

If you have a family, it’s always advisable to purchase a family floater plan instead of an individual health insurance policy. A family floater plan covers you, your spouse, and your dependent children under a common insurance umbrella, making it cheaper than if you were to take out individual insurance policies for each family member. In fact, once two or more people are covered under a single plan, the cost of health coverage per person gets lowered.

5. Take advantage of your no claims bonus

Did you know that you can get a reward for not making any claims on your health insurance policy? Known as a no claims bonus, the bonus for zero claims made by a policyholder in the preceding year usually comes in the form of an increase in medical coverage or discount on the premium. A useful tip is to refrain from making small claims to save your no claims bonus.

6. Buy a top-up plan

In some cases, you might already have a health insurance policy, but would like to add more benefits to make the most of it. For example, you might have health insurance from your employer and would like to get more coverage for medical expenses than what’s offered. In that case, buying a top-up plan would be a cheaper option than buying a whole new policy.

7. Compare health insurance plans

Before buying a plan, you need to make sure you’re getting the most cost-effective health insurance for your requirements. Spend time looking at different insurance providers and plans to ensure you make an informed decision. Even though lower health insurance premiums may be desirable, cost should not be the only reason you choose a plan and adequate coverage should be the priority. You’ll also want to take details of the insurer into account, such as their credibility and claims process.

If that sounds too time-consuming or overwhelming, it’s advisable to work with a reputable insurance broker like Pacific Prime. When working with Pacific Prime, you can be sure that you’re paying the same price as you would if you went directly to the insurer. On top of that, we also compare medical insurance plans to ensure you get the best plan for your needs and budget, whether you’re looking for international health insurance or a local plan. Contact us for a free plan comparison or consultation today.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.