by
Almog Ramrajkar
| Nov 16, 2021
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
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.
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.
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.
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.
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.