When buying a health insurance plan, have you ever wondered how your premiums are calculated? You may have noticed that two people can get charged different premiums for the same amount of coverage. If you are wondering what influences the premium calculation, then this article can help you out. Read on to discover 7 important factors that influence your health insurance premium.
- The age
The age of the applicant plays a huge role in determining the premium that they will get charged. This is because as you age, you are more likely to fall ill. So, if a person aged 50 years applies for a health insurance plan of Rs 10 lakhs coverage and a person aged 25 years applies for the same sum insured, the person aged 50 years will get charged a much higher premium.
- Body mass index (BMI)
If your BMI is on the higher side, chances are you will be charged a much higher premium for your coverage. This is because a high BMI is usually associated with an increased risk of health conditions such as heart disease.
- The coverage
Your health insurance premium is also determined by the plan that you choose. A higher sum insured will naturally come along with a higher premium. Also, if you include add-ons like hospital cash or critical illness cover, you will incur an additional charge for these. However, this should not stop you from getting the right add-ons for wholesome protection. You can even consider buying standalone coverage in the form of critical illness insurance to supplement your existing health insurance plan.
- Habits like smoking & consuming alcohol
Habits such as smoking can put you at a higher risk of developing diseases such as cancer. Thus, if you have these habits, you usually get charged a higher premium. However, never hide any information from your insurer as this could lead to issues when you raise a claim.
- Coverage duration
Opting for a single-year health insurance plan will usually see you pay much higher premiums in the long run. If you want to save money on premiums, you might want to consider opting for a multi-year plan as these are generally cheaper.
- Pre-existing conditions
Your medical history gives the insurance company an idea of what you may possibly make claims for in the future. It can also indicate how often you may make claims. If you have pre-existing diseases, your health insurance premium will generally be higher than someone without pre-existing conditions.
Some insurers also generally charge a higher premium to one gender if they find that they tend to raise more claims than the other. For instance, some may charge women a higher premium whereas others may charge men a higher premium.
We hope that this article has helped you gain a better understanding of the factors that influence your health insurance premium. Do keep your health insurance or Mediclaim policy active so that you stay constantly protected.