Financial Planning: How to Reduce Your Cost of Health Insurance Premiums

In 2019, about 26.1 million people in the United States didn’t have health insurance cover at any point during the year.

Has your insurance premium become a struggle to pay, and you’re looking for ways to reduce the costs? Going by the figure above, it’s evident that insurance premiums can be quite expensive to some people to the extent of staying without a cover. What if I told you there are ways you can reduce your insurance premiums?

Read along to get pointers on how to reduce the cost of health insurance premiums.

Purchase a Policy Early

One of the best ways to reduce your health insurance premiums is by getting a policy while you are still young. It’s a no-brainer that one of the factors insurance firms use to calculate premiums is your age. The older you are, the more you are likely to pay for your cover and vice versa.

This is because some diseases come up as a result of aging, such as heart conditions and diabetes. This disease adds up to your medical history, increasing your insurance premium. Thus, it’s advisable to take up a policy when you are younger since chances are your medical history will be somehow clean.

Consider a Lower Sum Insured

Another way to reduce health insurance costs is by selecting a reduced sum insured. This is the money that the insurance avails you to cover your medical costs. Reducing the amount you can get will reduce how much you pay for your health insurance.

The beauty of this option is that you can increase the amount of sum insured when you can afford a higher package. That way, you will have an affordable health insurance cover that you can afford.

Consider either Deductibles or Co-pay Policies

You have the option to consider either copay or deductibles policies for your insurance cover.

Copay means that you’ll incur a fixed expense of your medical costs, then your insurance will cover the rest. In contrast, the deductible policy requires you to incur a fixed amount of your medical costs before your insurance takes effect.

Have Long-term Policies

Premiums with longer tenures have lower payables compared to annual insurance plans. Thus, you should consider taking a longer insurance policy to reduce the amount you pay for the cover.

To reduce the payments by a significant sum of money, compare different types of health insurance plans. That way, you’ll be able to take the cover which offers the best value for your money at affordable rates.

Apply for a Tax Credit

Check if you qualify for a tax credit on your premium, which can lower your insurance policy costs. To qualify, you must not have a public insurance cover or employment cover. The money is sent directly to your health insurance firm from the government.

Go here for more information on how you can reduce your health insurance costs.

Reduce Your Cost of Health Insurance Premiums Today

Insurance cover costs should no longer take a deep hit on your pocket. Use the above pointers to reduce your cost of health insurance premiums.

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