How to Plan Your Health Insurance Premiums Well in Advance?

There is a big possibility that the increasing healthcare costs can put a massive strain on your savings. That is why by buying a health insurance plan, you can safeguard your finances in case of a medical emergency. Budgeting and financial planning are very important in Indian families, and any kind of expenses or paying for policy premium brings a significant cause for planning in advance. Once you have a health insurance policy, paying for its premium monthly or annually becomes an important part of your expenditure. Planning for your insurance premium payment in advance is crucial in order to continue the benefits and services of health coverage, and it is also essential as there is a chance that the premium amount may increase in the future. 

Let's take a look at how you can plan for your health insurance premium payment:

 

·        Calculate your premium:

It is crucial to calculate your health insurance premium in order to make an informed decision about further planning. You can calculate the insurance premium amount for any particular plan on the website of the insurance provider you choose. The calculated amount will give you the amount you will be required to pay in order to buy the particular plan from that insurer. By finding this amount for premium, you can effectively plan your finances accordingly. 

 

·        Get affordable insurance coverage:

It is a common understanding to purchase a health insurance plan that suits your budget and provides you with adequate insurance coverage. The more extensive coverage you get, the higher rate of insurance premium you will have to pay. Eventually, it falls on your shoulders to select a health insurance policy that fulfils your insurance requirements and at the same time suits your budget. 

 

·        Keep aside an emergency fund:

It is always advisable to keep a minimum of 6 to 12 months of emergency funds aside. It can be used during any kind of contingency. You can also use this amount to pay the annual premium amount of the health insurance policy when it is due. You can keep the fund as a fixed deposit or a liquid mutual fund. A contingency fund can work as a financial cushion in times of emergency expenses and keep a steady cash flow.

 

·        Lean towards saving, not spending:

When you are planning your finances and your insurance premiums in advance, be watchful of your unnecessary expenses and try to avoid them as much as possible. Spending money occasionally for enjoyment and relaxation is understandable but keep a watch on your spending habits and curb them if getting out of hand. Once you avoid unnecessary expenses, you can focus on saving more towards your annual insurance premium. The small savings can help you well in the long run.

 

·        Keep a reminder for insurance premium payment:

A health insurance policy provides you with much needed financial cover; hence, if you forget to pay your insurance premium on time, there is a chance that your policy might lapse, leaving you without a protective health insurance cover. Paying your premium on time will surely assist you with keeping your health cover intact. But fear not, as many insurers provide you with a grace period of 15 to 30 days, during which you can pay your premium without any hassles. Many insurers even remind the policyholders when the due date for insurance renewal is approaching, or you can set a reminder yourself. 

 

The above points will definitely help you navigate and plan your health insurance premium payment well in advance. Buying Health insurance is a great way to protect your savings from the financial impact of medical emergencies. However, this security comes with its share of responsibility, and that is paying premiums on time.

 

For more information, visit the Kotak General Insurance website.