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Steps to Calculate Health Insurance Premiums

Health insurance premiums depend on many factors including age, lifestyle habits, coverage amount, etc.

  • 16 Nov 2021
  • min read

Premium is an essential factor that you must take into consideration before buying health insurance. This is because only if you pay it on time can you avail the benefits of your policy. It’s interesting to note that premiums for the same plan may differ across policyholders. While you can easily get a quote from your insurer, keeping in mind these factors can help you calculate health insurance premiums.

Factors Affecting Health Insurance Premiums

  • Age

It is a vital factor affecting health insurance premiums. Premiums increase with age. This is because the body is more susceptible to diseases and ailments as and when you age. The insurer thus covers a greater risk and hence charges you more.

Therefore, it’s is advisable to buy health insurance when you are young and healthy. It will help you make significant savings.

  • Lifestyle Habits

The lifestyle you lead has a direct bearing on health insurance premiums. If you are addicted to smoking or drinking, it will push up the premium amount. On the other hand, if you don’t, the insurer charges you less for the same policy offering the same coverage.

Smoking and drinking increase the chances of falling ill, leading to subsequent hospitalization. With a higher risk element involved with these habits, you need to pay more to your insurer.

  • Coverage Amount

Health insurance premiums are directly proportional to the coverage amount. It means higher the amount, higher the premium. To put it numerically, you need to pay more for ₹ 10 lakh coverage than ₹ 5 lakh.

  • Co-pay and Sub-limit Clauses

Co-pay refers to the amount you need to pay from your pocket towards hospitalization bill(s), while sub-limit is the cap on expenses such as room rent, doctor’s consultation fee, etc.

These clauses are there in health insurance plans to prevent misuse. A low co-pay and high sub-limit entail paying a higher premium.

  • Age of the Eldest Member in Case of a Family Floater Plan

In case you are willing to buy a family floater plan which provides coverage to all family members, the premium amount depends on the age of the eldest member. More the age, higher the premium.

  • Pre-existing Ailments

If you have any pre-existing ailments or diseases, premium increases. For example, if you are suffering from diabetes or hypertension, you need to pay more towards your health insurance plan.

  • Riders Opted For

Health insurance riders are add-ons that you add to your base policy. Adding riders to your policy increases the premium amount to some extent. With riders, you can further fortify your coverage.

Using Health Insurance Premium Calculator

While the above steps can help you get an estimate of the premium you need to pay, a health insurance premium calculator makes the job extremely easy and fast. Today, almost all insurers have this calculator on their website, with the help of which you can get premium quotes effortlessly.

Also read:

How to Use Health Insurance Premium Calculator?

While the specifics may differ across insurers, the common steps involved are:

  • Choose the Sum Insured

Enter the sum insured the maximum coverage provided by your insurer.

  • Age, Gender, and Other Details

You need to enter your age, gender, and other information such as the number of people for whom you want to receive coverage (if so), whether you smoke or not, etc.

  • Mobile and Email

Next, you need to enter your mobile number and email address and click on the get quote button. Upon doing so, the quote is instantly displayed.

If you are using ICICI Lombard Health Insurance Calculator, all you need to do is to choose the name of the policy you want to buy, your age, details of kids, mobile number, and email, and click on “Get quote”. You can instantly know the premium for a particular health plan you wish to purchase.

Benefits of Using Health Insurance Premium Calculator

  • Quick and Easy

Calculating health insurance premiums with a calculator is fast and easy. The manual process is quite cumbersome. The calculator already has built-in algorithms that help in the quick computation of the premium amount.

  • Change Preferences

This is another major benefit. You can change preferences, and the quote will adjust accordingly. For example, you can increase or decrease the coverage amount to know precisely how much you need to pay towards your plan.

  • Filter and Shortlist

Based on the quotes received, you can shortlist plans that you wish to buy. Also, you can do it from anywhere, anytime without the need to physically visit the insurer’s office. The calculator is available 24x7, 365 days a year. So, you can use it at your convenience whenever needed.

The Bottom Line

Note that while premium is an important factor while buying health insurance, it’s not the only one. Apart from premiums, do check the network of hospitals where you can get cashless treatment facilities and the exclusions, among others.

Also, while buying, make sure to fill up the proposal form correctly without concealing any information as this might lead to claim rejection. If you are suffering from any pre-existing diseases, do mention the same. Though this will push up the premium amount, you will not be left in a lurch while making claims.

After receiving the policy, go through it carefully and make sure everything is in place. Bring it to the notice of your insurer immediately in case of any discrepancy.

ICICI Lombard provide health insurance plans like Complete Health Insurance, Personal Accident Insurance, Health Booster, Corona Kavach Policy, Arogya Sanjeevani Policy, which offers people with the much needed financial backup during any medical emergencies.

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