Can't afford your insurance premiums anymore? On Insurance Awareness Day, top industry experts share real-life examples and actionable strategies—like top-ups, monthly payments, and co-pay clauses—to reduce your costs without compromising your protection.

Insurance is the first wall of financial security for every family, but when the monthly budget stretches, it is the first thing that is looked at for reduction. Many people are unable to pay the premium on time and the policy either lapses or continues with less cover. But is there any way to reduce the premium in which your security is maintained and the pocket is not burdened?

Today, on Insurance Awareness Day, experts have suggested some such practical and effective measures that can solve the big problem of common policyholders.

In today’s era, maintaining insurance amid changing priorities and inflation can be challenging, but it is not impossible. Insurance sector veterans believe that with smart planning and a few changes, you can continue your policy and also reduce the premium.
This includes options like taking an online policy, using a top-up plan, choosing a monthly/quarterly payment mode, or removing some non-essential riders. According to experts, instead of considering insurance as ‘one size fits all’, look at it as a life-changing strategy.

Consolidate policies, go online and buy early

Jude Gomes, MD & CEO of Ageas Federal Life Insurance, points out that even though affordability is becoming a challenge, there are several ways to manage costs wisely.

“Shifting financial priorities and rising expenses can make it difficult to maintain insurance premiums. However, there are practical ways to manage costs without compromising on protection,” he says.

He recommends opting for basic protection insurance, which provides substantial coverage at a relatively low cost. Gomes also adds, “Annual premium payments can reduce administrative charges and may unlock discounts. Adopting a healthy lifestyle can also lead to better rates, as insurers reward lower health risks. Purchasing insurance early helps lock in lower premiums due to reduced mortality risk. Online policies often come with cost savings due to lower distribution expenses.”

For those juggling multiple policies, Gomes suggests policy consolidation as a way to simplify and save money. “Consolidation can simplify management and improve cost-efficiency,” he notes.

Flexible payment and top-up plans for smoother cash flow

He adds, “As insurers, it is our responsibility to support customers in making informed and sustainable choices.”

Health insurance hacks: Use co-payment and room rent riders

Ajay Shah, Head – Distribution at Care Health Insurance, echoes similar thoughts, especially when it comes to health insurance. He points out that premium costs can be controlled smartly without losing out on necessary coverage.

“While everyone counts on affordable premium for their coverage, it doesn’t necessarily need to come at the cost of losing comprehensive protection,” he says.

He advises using co-payment clauses or sub-limits to reduce premium outflows. “These can help reduce the premium while purchasing the policy, where a proportion of the claimed amount is to be borne by the insured at the time of filing a claim, ” Shah explains. “One should thoroughly read the policy terms and conditions to better understand the clauses.”

He also suggests switching to monthly or quarterly payment modes to maintain cash flow and using top-up or super top-up plans as affordable ways to increase health cover. “These small but strategic adjustments can help policyholders stay financially secured while navigating through changing financial situations in life,” he adds.

Case study: 36% premium saved with smart customisation

Shah shares a case to show how premiums can be reduced significantly through smart customisations. “If a 65-year-old individual buys a health insurance policy with a sum insured of Rs10 lakh at a premium of Rs 35,088, applying a co-payment optional rider reduces the premium by approximately 16%,” he explains.

“If we further choose riders like ‘Smart Select’ (selected network of hospitals) and ‘Room Rent Modification’ (single private AC room), the premium reduces by overall 36%, making this proposition much more affordable for the customer,” Shah elaborates.

Simplify, top-up and trim: Tips for smarter insurance

Kunal Varma, Co-Founder and CEO of Freo, reinforces that insurance should not be viewed as a burden. “If annual premiums seem heavy, switching to a monthly or quarterly payment mode can ease the pressure without affecting your coverage,” he says.

He suggests trimming non-essential riders or bundling a base plan with a top-up to maintain protection while controlling costs. “We have seen young professionals opt for a Rs 5 lakh base cover and add a Rs 20 lakh top-up, keeping premiums low while maintaining high protection,” Varma shares.

“Similarly, a family of four switched from yearly to monthly payments and dropped a few overlapping riders, saving nearly Rs 7,000 a year without compromising on core benefits.”