Which Factors Affect Health Insurance Premium?

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With the advancement in medical facilities, healthcare costs have also increased. The main benefit of health insurance is that it takes care of your healthcare expenses. It offers financial security to you and your family in the event of an unanticipated serious illness or accidental injury that could drain all your savings. Here is how the cost of your insurance policy is determined:

Medical History: Your medical history is one of the major determinants of your health insurance premium. Almost all health insurers in India make pre-medical tests mandatory after a certain age for buying a health insurance policy. While some insurance companies don’t make medical screening mandatory, they do consider your current medical conditions, lifestyle-related health risks and the medical background of your family. That is why medical insurance premiums for smokers are higher than other people.
Gender and Age: Age is another important determinant of medical insurance premiums. The premium increases as the age of the insured increases. That is why it is recommended to buy a policy at a young age because the premiums are lower for younger applicants.
Elderly people are vulnerable to cardiovascular diseases and other critical illnesses, such as cancer, kidney problems, etc. For this reason, senior citizens medical insurance premiums are usually on the higher side.
Also, the cost of health insurance for women is lower in comparison to the male candidates due to the lower risk of stroke, heart attack, etc.
Policy Term : premium for a 2-year health insurance plan will be higher than a 1-year plan. However, almost all insurance companies offer a discount on long-term medical insurance plans.
Type of Health Insurance Plan: The type of health insurance policy you select also affects your premium. The wider is the coverage, the higher will be the premium. With the help of an online health insurance premium calculator, you can compare the premium for different health insurance plans before buying.
No Claim Bonus: you have not made any claim during your previous policy term, then you can earn an NCB or No Claim Bonus discount. With NCB, you can save 5% to 50% on your renewal premium, depending on the number of claim-free years. It is also one of the most important factors that is taken into consideration while calculating the policy premium.
Lifestyle Habits: If you drink or smoke regularly, chances are high that you will be charged a higher premium. In severe cases, the insurer can also reject your medical insurance policy request.