Monday, November 28, 2016

4 Key Tactics for Reducing your Health Insurance Premiums



No one wants to think about getting sick, but we are all aware of the unfortunate fact that unforeseeable accidents and diseases can creep up on even the most healthy individual. Healthcare costs continue to rise worldwide, and most people simply can’t afford paying such expensive out-of-pocket hospital fees, which is why they secure health insurance in order to offset these costs with their policy. 

With health insurance premiums increasing year-on-year, plans can be quite costly, but there are ways to reduce these costs. This article by insurance advisor Pacific Prime Global Health Insurance Brokers guides you through some of the key tactics for reducing your health insurance premiums. 

First, take a look at your existing plan


If your current plan is too expensive or has increased in price drastically over the years, you may want to get rid of coverage elements that you definitely won’t need. By removing some of these benefits, this will help lower your premiums.


You may also want to review any changing circumstances when looking at cutting down on coverage benefits. For example, say your spouse has found a new job with an excellent medical benefits package. If that’s the case, you may want to consider dropping your spouse as a dependant in your current policy, as this will likely see a significant decrease in the rate of your plan.

Looking at the types of health insurance coverage


Plans tend to differ in the elements of coverage they offer, and these are often divided into the following three types:

Inpatient: This covers care that requires hospital stays only, and won’t cover for outpatient care such as check-ups. As this comes with the least amount of coverage, inpatient-only plans tend to be the cheapest.

Inpatient and outpatient:
This covers both inpatient care and outpatient care. If you rarely ever need to visit a doctor, you may want to strip out the outpatient benefit to save some money on your health insurance.

Full coverage: This includes inpatient and outpatient coverage, as well as extra add-on benefits such as maternity or vision insurance. For example, if you’re sure you won’t be having a baby anytime soon and are currently covered by maternity insurance, you may want to take out this benefit. However, please bear in mind that if you do need maternity insurance, this will need to be secured at least 10-12 months before the baby is conceived as these plans have waiting periods.


Adjusting your co-payment or deductible


Another viable option for reducing your premiums is to introduce or adjust a co-payment or deductible to your plan. The general rule is that the higher your co-payment or deductible is, the lower your premiums will be.

Co-payments are an agreed fixed amount that you will need to pay every time you submit a claim, for example agreeing to pay $50 towards every medical procedure. You can also consider paying a deductible, which is an amount you have to pay each year or for each claim before it can be submitted. 

Get your No Claims Discount


If you’re shopping around for a plan, have a look at whether they have what’s called a ‘No Claims Discount’ (NCD). Insurance plans with a NCD policy will apply a discount if you go a certain period of time, usually a year, without filing any claims. 




Many policies will increase the discount (up to a maximum amount) for every year that you don’t file a claim. However, if you do file a claim, you will see your NCD drop. Each policy will have different NCD rules, so it is important to know what exactly they entail. 

Consult an insurance broker


Some people still believe the myth that insurance intermediaries charge higher rates for plans, but this could not be further from the truth. Licensed insurance advisors like Pacific Prime Singapore leverage their close relationships with insurance companies to provide rates that are often more competitive than going to an insurance company directly.

By consulting a broker, not only will you enjoy competitive rates, but you will also benefit from:

A wealth of expertise: These people work with insurance daily, and are trained to provide you with unbiased advice based on their wealth of experience.

Time saved: Shopping for plans can be daunting, and doing research is simply time consuming. Insurance brokers do the work and research for you, so that you can just sit back, relax, and let them handle the rest.

Plans tailored to your needs:
There’s no one-size-fits-all when it comes to insurance policies, so brokers are dedicated to finding the best plan for you based on your specific needs and budget requirements.

Additional services: For even more added-value, you can also enjoy the additional services (e.g. in-house renewals teams) typically provided by insurance brokers.

About Pacific Prime Singapore:
If you are looking for the best value health insurance plans on the market, why not visit Pacific Prime Singapore’s Insurance Plans page to purchase your plan today? Their team of experienced insurance advisors offer a wealth of experience that you can rely on.

1 comment:

  1. Health insurance is an important cost to get right. The advice to consult a broker is very smart because they will be able to give you expert opinions on negotiating a good insurance deal. Thank you for this post.

    ReplyDelete

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