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How is Health Insurance Premium Calculator Useful?

Calculating health insurance premium can be tricky. Many buyers simply chose to go with the amount their insurance agent asks them to pay. However, thanks to this digital era, online tools have made it quick and easy to calculate health insurance premiums. A health insurance premium calculator is an online tool which helps you to determine the insurance premium and it also provides detailed information about the health plan in just a few clicks

A health insurance policy helps you to protect your savings from the medical expenses that may arise in the future. It helps you to be financially prepared in case of planned and unplanned hospitalisation. Health insurance empowers you to use cashless and reimbursement facility for all eligible healthcare expenditures when they occur. This financial security at the time of medical emergency is the result of planned investment in a comprehensive health insurance policy.

Now the question is, how can you measure your health insurance requirements? The answer is by using a health insurance premium calculator. It helps you to arrive at the premium amount that will be best suited for your health insurance requirements.

Benefits of Using Health Insurance Premium Calculator

Below listed are the key benefits of using a health insurance premium calculator:

  • It is a free tool readily available online.
  • A health insurance premium calculator helps to simplify complex calculations involved in determining health insurance premium and provides a quick result for the premium quotes.
  • Knowing the right amount of insurance premium makes it easier for financial planning.
  • It helps to compare premium quotes across multiple health insurance policies.
  • You can customise the inputs to determine the optimum premium amount suitable to your income and insurance needs.

Importance of Health Insurance Premium Calculator

  • Choosing a health insurance plan suitable for your unique needs can be a tricky task. Browsing through an extensive range of health insurance plans offered by a wide range of insurance providers requires you to thoroughly research, compare and analyse the different terms and conditions. However, the efforts of selecting the right insurance policy are worth it. Here’s how a health insurance premium calculator can make this entire process easier for you.
  • The health insurance premium calculator helps you get an accurate idea about the amount of premium as per your insurance requirements and financial objectives. It helps you to determine how much you are going to invest in your health insurance policy before you make a final decision regarding the plan you want to opt for.
  • A health insurance premium calculator shows all the available health insurance plans as per your search inputs so that you can compare different health plans. This makes the decision-making process entirely hassle-free.
  • A health insurance premium calculator also shows the available add-on riders on health insurance plans suitable for your needs. This not only gives you the flexibility to browse these plans at a glance but also convenience to buy them without having to visit websites of health insurance providers individually to know about them.
  • A health insurance premium calculator helps you to conduct detailed research all by yourself and be informed about different options available to you. You don’t have to approach various insurance companies and their agents to make a decision. This way, the entire process of screening and choosing a health insurance plan becomes seamless for you.

Factors Affecting Health Insurance Premium

Insurance companies have specific guidelines related to health insurance, and they do follow them each time they issue an insurance policy to a customer. Below is the list of a few factors that are commonly accepted and followed by most insurers.

Marketing and admin expenses

Marketing and administrative expenses of an insurance company are quite large in number and are included in the premiums paid by the policyholders. These expenses are consisting of designing cost of the insurance policy followed by brokerage, marketing, commission, brochure, advertisements and operational expenses.

Savings and investment

Generally, insurance companies invest their capital fund in various public sector investment instruments. These companies usually avoid investing in private sector investment options due to high level of risk. These investments are made under the guidelines of IRDA of India. The financial standing of the insurer is subject to the returns earned from such investments.

Medical underwriting

Insurance companies offer different types of health insurance plans such as individual health insurance policy, group insurance, family floater plans, etc. These companies get their health plans underwritten in such a way that there is a balance between all of these plans at the same time. They also analyse the possible risks from multiple angles and take into account a wide range of factors that could affect the claims. Based on that, different health plans get their specific criteria and terms, such as how much coverage to offer under a particular insurance plan and when to deny the coverage to the insured.

Rate of morbidity

This is the time when an insurance company suffers a case of any eventuality to a policyholder. The morbidity expense differs for various age groups and is generally high for older policyholders. For instance,

  • Higher premiums are charged for senior citizens
  • Premiums are generally higher for customers with ailments such as blood pressure or diabetes
  • Higher premiums are charged when the sum insured is higher

Personal history of insured

Insurance companies may or may not conduct a medical test before allotting a policy. However, insurance providers do take into account customer’s health, his/her family’s medical history, lifestyle habits such as smoking and drinking, and age at the time of availing the health insurance policy. All this information helps them to determine the amount of premium that an individual is required to pay. Generally, people with a medical history or those who smoke or drink regularly are charged a higher premium.

How to Use Health Insurance Premium Calculator?

In this digital age, most of the health insurance companies have made the premium calculation process digital. Error-free calculation of insurance premium has become a matter of a few seconds in just a few clicks. All you need to do is enter the basic information such as age, gender, number of people to be covered, residential location, etc. to calculate the health insurance premium.

Now you can see various health insurance plans with their premiums and corresponding features in a few seconds. You can also choose two or more insurance companies and their policies and select the one that meets your health insurance requirements.

Recommended Link: How to Plan in Advance for Paying your Health Insurance Premium

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