Key Factors that Influence Health Insurance Premium

Important Factors that Affect the Health Insurance Premiums

Now, let's take a look at some important aspects that help you in determining your health insurance premiums:

1. Sum Insured of the Policy

The sum insured (SI) varies in each health insurance policy. This is the maximum amount limit to which you will be reimbursed by the insurance company in case of a medical emergency. For instance, if the SI of your policy is Rs. 5 lakhs and your hospital bill is Rs. 8 lakhs, you can only claim up to Rs. 5 lakhs.

The lower your SI, the lower your premium price will be. However, if you take a higher sum insured, you will pay the higher premium, but in case of emergency, you may benefit more. The higher sum insured is preferable since medical emergencies can turn out to be a big mess, and you may need more coverage for those big expenses.

2. Age

Age is a factor that determines how much you pay for insurance. Generally, the older you are, the more you will pay. The reason is that the older people are more likely to fall sick than the younger people. So it is advisable to get health insurance when you are young; so that you get more coverage and better benefits at a lower price.

3. A Place where you live

Where you live also determines how much you pay for health insurance. Some insurance companies charge different prices based on where you live. If you live in a big city like Mumbai, Delhi, or Bengaluru, your premium may be higher than someone living in a smaller city.

4. Pre-Existing Diseases

Pre-existing diseases are health problems you had before buying health insurance, like high blood pressure or thyroid issues. Insurance companies look at risk when setting prices. If you already have health problems, you are more likely to need treatment in the future, so the insurance company might raise your premium.

Most insurers don’t cover pre-existing diseases right away, but they may offer coverage if you pay a higher premium or buy extra coverage for those conditions.

5. Body Mass Index (BMI)

If you have a high BMI, your insurance premium may be higher. People with high BMI are at higher risk for serious health problems like heart disease, diabetes, breathing issues, high blood pressure, and cancer.

6. Smoking Habits

India has around 11.2% of the world's smokers. Smoking raises health risks, so insurance companies see smokers as high-risk customers. Because of this, smokers usually have to pay higher premiums than non-smokers.

Miscellaneous Factors to Consider

There are many other things that can affect how much you pay for health insurance. Here are some of them:

• Occupation: The type of job you do affects your premium. If you work in a safe place like a school, your premium will be lower. But if you work in a risky place like a construction site or factory, the premium will be higher.
• Type of Plan: Simple health plans with fewer benefits will cost less. However, more comprehensive plans with better coverage or critical illness plans will have a higher premium.
• Gender: Men and women face different health issues. Some insurance companies may charge women higher premiums because of health risks like maternity expenses and pregnancy-related issues.
• Add-ons: Add-ons are extra benefits you can pay for. The more add-ons you buy, the higher your premium.
• Family Size: The number of people in your family can also impact the premium you pay.

To Sum Up

It's important to understand how health insurance premiums affect your choice of plan and your budget. Choose a plan with a premium you can afford to pay every year, including any price increases. Compare different health plans on Squareinsurance.in to find the best one for you. We are here to help you in every manner we can.