What Factors Impact Your Health Insurance Premium?


For a common man, it is difficult to get treatment of any disease in private hospitals in this era, as the cost for treatment it too high to bear. To get the right treatment without spending all your savings, you need to have the right health insurance at the earliest. Once you have it, any such troublesome situation can be avoided. However, while going for health insurance also one has to be much alert as there are many companies with different plans in the market. The chances are high that one may make a mistake in selecting the right health insurance company.

While choosing a policy, one needs to check for many factors that can affect not just the premium amount for the concerned coverage but also the decision of the company to offer the insurance.

Aspects that one must focus on while buying health insurance

  1. Age: While going for medical insurance, your age has maximum impact on the plan and premium as well as acceptance of application or rejection. Every company, in this segment, has specific processes to check the probability of early claims from the client. The normal rule here is higher the age higher the risk for the company. Hence one needs to go for medical insurance at a young age only as the premium will be low, and at the same time, the period to cover more diseases will be over. Some companies do not allow the client with a specific age, and hence it is considered as one of the main factors.
  2. Medical condition: It is another essential factor that contributes to your medical cost and insurance coverage. If the medical condition of the client is good and he has no bad habits such as consumption of tobacco or alcohol, he can have better chances of getting insurance with reasonable sum assured and at low cost. If the client has diabetes or blood pressure or any such ailment, the company may go for the medical test and check if the concerned client can be offered the insurance coverage or not.

After the medical tests also, the company may either decide to offer coverage with an additional premium or simply reject the application. Hence the medical condition of the client plays a crucial role here. However, one can leave bad habits and check his condition before going for the application to avoid such hassle.

  1. Coverage: For the company as well as the policy holder, this is a crucial factor. Every policy with Health Insurance Companies has minimum and maximum coverage. The cost or premium of the policy depends on the sum assured as well as the diseases that are covered. In some policies, one can see the coverage of post and pre-hospitalization is also provided while in some policies, there is no such provision. The cost of treatment to the donor of the organ, implant costs, room tariff are some of the points that vary from policy to policy. With a liberal policy, one may have to bear more premiums while those companies that do not offer such facilities may provide the policy at a low rate also.
  2. Profession: It is a factor that is taken into account by every insurance company in this field before offering the coverage. If the client is associated with a work where there can be a health hazard or risk to his life, his premium may be increased. Truck drivers, miners, skydivers, pilots, and people working in chemical factories may have to pay a higher premium compared to the people engaged in other professions or jobs.
  3. Online and offline purchase: One can compare the rates of the same plan and policy in an online and offline purchase. Usually, It is seen that the online shopping of the policy is cost-effective compared to the offline where there is also a commission amount that goes to the agent. Hence one who wants to save on a premium amount, it is better to go for the online insurance plan. However, the process for claim and coverage does not change whether one has got the policy from any of these options.

So, these are the points that may help you reduce or increase the premium amount for a specific sum assured.