In India today, health insurance plans are beginning to become quite important, especially in metropolitan areas. This is partly a result of the recent COVID-19 outbreak and the rising expense of medical care. While it can provide a safety net financially in the event of unanticipated medical problems, it’s crucial to take into account the premium cost.
Your health insurance premiums will be determined depending on a variety of variables and situations. Knowing the variables that will affect the cost of your premiums will help you make the most of your coverage because knowledge truly is power.
Top 7 elements that will impact the cost of your health insurance
1. The insured’s age
Your age is a key element in setting health insurance prices. This is due to the increased risk of mortality, hospitalisation, and medical costs that come with advancing age.
Additionally, some insurance providers set an upper age limit of 65 to 80 years for those purchasing new health insurance policies because it becomes harder to predict risk factors and medical costs as people age.
2. The plan type selected
The kind of health plan you select will affect the cost of your health insurance. For instance, health insurance plans for family typically cost less than individual coverage because it is more likely that one person will get sick. However, keep in mind that the premium for a family floater plan will be determined by the oldest member who is covered.
3. Sum insured
Your health insurance plans rate will also be impacted by the amount of coverage you choose. A lesser sum insured can lead to a lower premium, and vice versa for a greater SI. The sum insured is the maximum amount that you are eligible to claim from your insurer for medical expenses. However, you will be responsible for covering any additional expenses if your total medical bills are greater than your SI allotment. *
4. Existing conditions
A person is more likely to incur greater hospital costs as well as medical expenditures if they have pre-existing medical illnesses that have a long-term impact on their health, such as diabetes, high blood pressure, or asthma. As a result, they will be required to pay a greater premium than similarly aged, healthy individuals.
The portion of the claim amount that you will be required to pay under your health insurance is known as a co-payment. For instance, if your copay is 15%, your insurer would cover 85% of the claim’s cost and you will be responsible for the remaining 15%. In a sense, you and your insurance are splitting the cost of your medical care. *
6. Additional covers
You can choose additional coverages (also known as add-ons or riders) in addition to your current health insurance policy to increase its benefits for an additional fee.
You must pay an additional premium if you choose to personalise your health insurance with add-on covers such a maternity cover, critical illness cover, personal accident cover, or AYUSH treatment cover.
7. Family medical history
If any members of your immediate family (such as your parents or grandparents) have a history of conditions such as heart disease, cancer, Alzheimer’s disease, etc., you are at a higher risk of developing these conditions yourself. Your premium rate will rise as a result. *
You will know what to anticipate when you get or renew insurance if you are aware of the various elements that can have an impact on the premium amount you pay. Additionally, once you have taken into account all of these factors, you may determine what is your health insurance premium amount online by using a health insurance premium calculator.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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