Are Those Discounts Offered By Health Insurers For Real?

Buyers need to focus on the salient features of a health policy rather than the discounts

- Navneet Dubey

People love discounts and companies know that only too well. Corporates use discount strategies for various reasons, from rewarding loyal customers to attracting new ones. And health insurers aren’t any different when it comes to discounts.

Here is what an insurer typically offers: A discount on the premium when you buy a health insurance policy online or renew an existing policy. The discounts depend on whether you are a salaried individual, insuring a girl child under a family floater plan, or even porting your policy within three years of buying it. In such cases, you can get a 5% discount on the premium. People who maintain a good credit score or are an existing policyholder can get a 7-10% discount on the renewal premium, depending on the insurer they are dealing with.

Even as discounts have become very important for companies to lure customers, it is important for policy buyers to understand the types of discount offered by insurers and whether these are genuine or mere promotional strategies. Naval Goel, founder and chief executive officer of PolicyX.com, says, “The pricing strategy of insurers depends on various factors such as claims made in a particular segment, coverage of the product and the benefits made available to policy subscribers. The discounts, too, are based on these factors and are put in place solely for promotional purposes.“