Factors that affect Health Insurance Premium

If there is one investment that you should make for yourself and your family, then it is an adequate health insurance plan. It can help you reduce the burden of your medical expenses in case of an unforeseen emergency, and work as a safety net in our current fast-paced lifestyle.

But have you ever wondered what defines your Health Insurance Premium?

Two people with a similar background and same age may have unequal premium amounts. Several factors affect the premium. Let us discuss a few of these.

Age

As they say, the early bird catches the worm. The earlier you start, the lower is the premium because you are lesser prone to illness at a younger age. The 20s and the 30s are when, as a married woman, you may plan a child and can avail a maternity cover.

Your Body Mass Index (BMI)

A higher BMI may be an indicator of various medical complications later in life like diabetes, blood pressure, heart disorders, joint pains and difficulties during pregnancy. Thus, higher the BMI, more is the premium.

Pre-existing Medical Conditions

Some insurers may need you to undergo a medical examination and disclose any pre-existing medical condition. It is always advisable to provide complete and transparent information about your medical condition. Either your insurer may not cover it, or will charge you extra premium for that. There might also be a higher waiting period. In case you have no pre-existing medical condition, your premium will go down.

Family Medical History

If you have a family history of heart disease, diabetes, etc., then your premium is higher. There might be a mandatory waiting period before which your cover will begin.

Your Marital Status

Married people live longer. Yes, that's what insurers believe. That is why, as a married couple, your health insurance premium will be lower than singles.

Consumption of Injurious Substances

If you are consuming substances like tobacco, or are a regular smoker, your chances of falling sick and filing got a claim is high. These habits give rise to cancer, stroke, asthma and other respiratory and heart diseases. Therefore, your insurer will charge you a higher premium.

Some health insurance players may even reject your application. Now you have one more reason to kick the butt.

Your Profession

If you are in a hazardous or risky profession that involves you dealing with radiations and chemicals, then chances are that your premium will be higher. Even working in a high-pressure job or a polluted environment can lead to a higher premium.

Location

If you are in a Tier 1 city, the cost of treatment is bound to be more. This increased cost is included in the premium. Your location also defines your lifestyle, the quality of air and water with the pollution level etc. and can have an impact on your premium.

Sum Insured and Add-On

It is obvious – higher the sum insured (cover), higher the premium. However, this rise in the sum insured alone is not proportionate to the increase in premium. Add-ons included in your cover may also increase the premium.

Plan Features

Some features of your health insurance plan can affect your premium. These include term and type of the plan. Generally, a longer term lowers your premium. Also, in case of a family floater plan, your premium will be lower than an individual plan.

Marsh India can help you choose from a wide variety of insurers to suit your needs. We can guide so that you choose wisely to avail the right cover at the right premium.

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