While buying a health insurance plan many important aspects are considered which affect the premium of the policy. It is necessary to be aware about these factors so that you try to restrict the premium accordingly.
In India, health insurance gained momentum in the last couple of years, especially after the pandemic. On one hand, people in the urban areas with their unpredictable ways of life and health complexities have become more conscious of the need for good health coverage. And on the other hand, people living in semi-urban areas are also opting for policies to cover them against healthcare expenses. The rise in the cost of healthcare expenses is definitely a factor which makes it imperative for everyone to have health coverage.
Health insurance policies take care of the costs arising out of health emergencies. However, it is necessary to buy a policy with utmost care to ensure that the premium you pay for the plan doesn’t burn your pocket and allow good returns at the same time. To ensure that you have to look at different factors that affect your health insurance premium. Here are top 10 such factors to consider:
The premium of your health insurance depends on the type of health plan you choose to buy. If you buy a family floater policy, you may avail lower premium as compared to buying individual coverage. However, even in case of family floater policies, the premium paid is determined as per the age of the oldest member who is insured.
As mentioned above, the age of the policyholder is another major factor that affects the premium of your health insurance. As we age, the possibility of getting ill and hospitalized increases. Hence, most insurers provide an age limit beyond which they do not sell new health policies to individuals. And so, it becomes difficult to get medical insurance for aged people as the risk factor becomes more.
Yes, the sum insured (SI) you choose is another factor affecting health insurance premium. The amount chosen as SI is the highest amount which can be claimed against the healthcare expenses. Hence, if the SI is low, it lowers the premium, while if the SI is high, it increases the premium amount. So, in case your total medical expenses go beyond the SI amount, you will have to pay the extra amount from your pocket. Thus, you have to be careful at the time of choosing your SI.
Your health insurance plan becomes pricey if you suffer from any pre-existing medical condition. PEDs with long term influence on the health of the insured such as diabetes, high BP, etc., are likely to incur extra healthcare charges and bills. Hence, the insurance companies levy high premiums while selling health insurance to people suffering from PED. Thus, the premium of your health policy depends on the severity of your PED condition.
Most health insurance companies allow policyholders to include extra coverage called add-on coverage which can be purchased by paying an extra amount of premium. This way, you can personalize your health policy by adding covers like personal accident cover, maternity cover, zero-depreciation cover and so on. Here, you must note that the total premium that you pay for your add-ons under a plan should not be more than 30% of the original premium of your health policy.
Depending on the location you reside, the environmental factors surrounding you vary such as pollution level, climate etc. Further, in India the cost of healthcare varies as per the zone you live in. For instance, people living in metro cities are more prone to illnesses and expensive healthcare treatments, which makes their health insurance expensive.
The amount of risk you face at work will also be considered when calculating your insurance premium. Individuals with safer jobs such as office work will be required to pay less compared to those employed in a construction site or factory that are at a higher risk of injuries or accidents.
If your parents, grandparents or anyone else in the immediate family suffered from diseases like heart ailments, Alzheimer’s or cancer of any type, the insurance company raises the premium stating that you are prone to develop such illnesses later in life.
If you are following unhealthy ways of life such as smoking, consuming alcohol, chewing tobacco etc., it will definitely influence the premium you pay. This is because being involved in such activities enhances the risk of lung infections and many other diseases. Hence, smokers are charged with a greater premium as compared to non-smokers.
Obese people or people who are overweight as per their BMI are said to be more prone to developing diseases like diabetes and hypertension. Hence, insurance companies levy higher premiums on people who are overweight.
All the above and other such factors are considered while calculating the insurance premium for your health plan. When you finally decide to buy a plan, you must buy it from a top and reliable insurance company or bank which offers a range of plans with lucrative benefits. Below are some names of insurance companies and banks that are regarded as the best health insurance providers in the country that you can choose to buy your insurance from.
Here is a list of top insurance companies offering health insurance plans in India:
|Aditya Birla Health Insurance
|Cholamandalam MS General Insurance
|Kotak General Insurance
|Neva Bupa Insurance
|Bajaj Allianz General Insurance
|Edelweiss General Insurance
|Go Digit General Insurance
|Tata AIG General Insurance
|Future Generali India Insurance
|Iffco Tokio General Insurance
|Star Health Insurance
Here is a list of the top banks offering health insurance plans in India:
|Bank of Baroda
|Union Bank of India
To sum it up, now you know exactly what factors affect health insurance premiums. All the above factors and more are influencing features that decide the premium of your health insurance. So, while buying a plan, do consider these factors well. Understand these features to know how and why your health insurance premium increases.
* Rs. 245/month is the starting price for a 5 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*! Rs. 334/month is the starting price for a 10 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*@ Rs. 12/day is the starting price for a 5 lac family health insurance for an 25-year-old male and 22-year-old female, with no pre-existing diseases.
*# Rs. 12/day is the starting price for a 5 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*$ Rs. 600/month is the starting price for a 20 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*^ Rs. 12/day is the starting price for a health insurance that covers coronavirus for an 25-year-old male, with no pre-existing diseases.