What if your premiums stay the same if you don’t make a claim? A few insurance companies offer just that with premium lock options. This will freeze your premium amount until you make a claim or reach a certain age.

Some products offering this option include Niva Bupa Reassure 2.0, Niva Bupa Aspire and Super Star Health Insurance. The latest addition to this category is Galaxy Promise, which is the first product from Galaxy Health Insurance, a new entrant in the health insurance market. The company was founded by V. Jagannathan, who previously launched Star Health.

“A premium lock-in feature, very useful for young policyholders. Once the lock-in period ends, the premium can increase by 15-20 per cent every five years,” said Nikhil Jha, founder, Hercules Insurance Advisors.

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Niva Bupa Reassures 2.0 and Aspire

Both products have a ‘lock the clock’ feature, meaning the premium rate is set based on the age you take out the policy and remains unchanged until a claim is processed. Future premiums are determined based on age groups.

The functionality of Aspire is slightly different from that of Reassure 2.0. If a claim falls under Aspire’s M-iracle benefit, it will not affect the “lock the clock” status, unlike Reassure 2.0 where any type of claim voids the benefit.

“The M-iracle benefit covers maternity expenses – including childbirth and associated medical services – and legal adoption (subject to policy terms and conditions). This is a unique benefit for those who are planning to start a family, providing additional flexibility to claim the fees without worrying about premium hikes,” said Mahavir Chopra, founder, Beshak.org.

Reassure 2.0 offers variants such as gold, platinum and titanium. One of the main benefits is the restoration service which activates after the first request and remains in effect indefinitely.

Aimed at young professionals, Niva Bupa Aspires offers multiple maternity benefits such as IVF, adoption and surrogacy. It also offers OPD and global coverage.

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Super star health insurance

The policy locks your age upon entry. Your premium can only change after a claim is paid or when you reach age 55. After that, premiums are charged based on your current age each time you renew. However, the option is only available if someone buys the policy before reaching 50 years of age.

The contract offers a discount of up to 15% depending on your Cibil score, available for those under 50. This is a comprehensive plan with an affordable premium, allowing unlimited claim amount once in the life of the policyholder. The “bonus for no claims” option can be applied regardless of previous claims.

Galaxy Promise

The “Premium Promise” feature of Galaxy Health is the same as that of Star Health. It locks in your premium until age 55 or until a claim is made. Only people under the age of 50 can benefit from this feature.

There are a few new features in Galaxy Promise, like Gala Fit, that provide wellness points for kids and adults.

G. Srinivasan, MD and CEO of Galaxy Health, said Galaxy Health is the first insurer to offer coverage for polysomnography, a sleep study test. This will be covered until ₹25,000 based on the sum assured.

“If you do not wish to benefit from the bonus for no claims, you can benefit from a reduction for no claims. For the first time in many years, an insurer is offering it. It will be 2 to 4% in its variant superior Signature, from ₹5 lakh sum assured,” Jha said. There are many other features of the industry as well, but as a new insurer one needs to be aware of its no-claims history and network coverage expansion.

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Should you consider purchasing premium lock packages?

This feature sounds amazing, but be prepared for a steep premium hike even if you make a small claim. Some plans have an age limit to benefit from this feature. It’s been 50 years in Super Star Health and Galaxy Promise. “Even if you sign up for one of these plans before the age of 50, once you turn 55, the premiums unlock automatically and adjust to your current age, regardless of claims history. So while it looks like a great hack in the long run, the chance of realizing the full benefits is much less,” Chopra said.

Take into account the possibility of product discontinuation. “Will insurers guarantee the availability of these products? Without the guarantee that a policy will remain in the market for the promised duration, premium locks are meaningless,” said Hari Radhakrishnan, senior member of the Indian Association insurance brokers (IBAI). ). “Insurers frequently file or discontinue products, citing regulatory changes, medical inflation or the addition of new coverages. While these adjustments may be necessary for compliance and sustainability, they often force customers to purchase new policies with higher premiums, eroding confidence in long-term promises. »

Certainly, as per the regulations of the Insurance Regulatory and Development Authority (Irdai), the insurer can withdraw any product at any time, subject to the approval of the internal committee, by simply informing the ‘Irdai.

“When this happens, you will be transferred to another plan with the same sum assured, but none of the brilliant additional benefits above can exist. So, when purchasing health insurance, always prioritize the basic benefits of coverage such as adequate sum assured, low or no room rent limit, no sub-limit on specific treatments, day care, organ donor, modern treatment, etc.,” Chopra said. .

Insurers need to change direction to build trust. “If they guarantee the stability of premiums, they must also guarantee the longevity of the product. Keeping a product in the portfolio for its entire duration matches policyholder expectations and avoids the frustration of forced migrations to more expensive options,” said Radhakrishnan.

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