How do I calculate my Health Insurance Premium?
December 11, 2019
While most people know the benefits of having a health insurance cover, not many know what is the right coverage amount. The cover greatly depends on how much premium you pay. Read on know more about how the insurance companies calculate the premium.
Today, due to rising concerns about people suffering from various illnesses at a very young age, people are adopting a healthy lifestyle. While most people think about being fit, not many people think about having health insurance. You can suffer from an illness at any time. And when your health fails, the insurance comes handy to help you cope with the treatment cost.
The level of cover and the protection you get from your health insurance depends on the premium you pay. But, have you wondered how do insurance companies calculate the premium? The insurers consider a broad range of factors. Although the factors vary from one insurance company to the other. Listed below are a few general guidelines that the insurers follow:
One of the critical factors that determine your health insurance premium is your age. The earlier you buy insurance, the lesser will be the premium. When you are young, you are at a lower risk of contracting any serious illness. To know the exact premium amount for the plan you choose, you can use the health insurance premium calculator .
Current health condition
Your current health status plays a vital role while determining your insurance premium. If you have health conditions like obesity or if you have the habit of smoking, the insurance company may consider you as a high-risk customer as you are more susceptible to a severe health condition. Consequently, you would have to pay a higher premium.
If you have the habit of consuming tobacco in any form or if you are a regular drinker, you can expect your insurance premium to be costlier. Also, such unhealthy habits increase the risk of your insurance application getting rejected. This is because alcohol and tobacco abuse increase the risk of life-threatening conditions like cancer. So, if you are looking to buy health insurance, it is advisable to give up the bad habits and avoid the risk of insurance rejection.
Place of residence
Not many people know that their location also affects their health insurance premium. The insurance companies usually charge a higher premium for people living in the metro cities as compared to those living in remote locations. This is because the people living in urban areas are more prone to unhealthy lifestyle and are exposed to pollution, which increases the risk of suffering from diseases. Also, the healthcare cost is much higher in cities than in the rural area. So, while calculating the premium using the health insurance premium calculator, consider your location too to arrive at the right figure.
Type of policy
Today in India, the insurance companies offer different types of health insurance plans to suit the specific needs of the buyers. So, the premium amount of your insurance will vary based on the type of policy you choose. If you choose a basic plan, your premium will be lower as compared to a plan that provides the benefit of insurance coverage as well as savings.
Now that you know what factors affect your premium, do your research well about the different plans available in the market and buy the best health insurance plan with an affordable premium.
If you are a customer, apply for a Health Insurance Plan , here.
If you are a non-customer, apply for a Health Insurance Plan , here.