What is Premium in Health Insurance?

As mentioned above, your premium depends on multiple factors. Do not break your head on this. To help you understand the same, we have created an entire list of things that affects the cost of the premium for your health insurance policy. Go through each pointer one-by-one, and you will be well-prepared in buying a new health plan.

You need to understand that you are a risk to the insurer's overall financial health. The insurer's job is to provide you health cover but at appropriate amounts. This means that if you carry more risk, the pricier will be the cost of your cover. Now that you know that there are different plans and insurers, the health insurance premium will also fluctuate as per the given factors below:

• In every health policy document, you must have come across the term pre-existing diseases. Pre-existing diseases are illnesses and conditions that are present or are likely to occur in the future (as per the medical report/genetic disposition/medical physician's check-up). Individuals who have a wide range of pre-existing illnesses are more likely to file a health claim in the near future. Therefore, insurers charge a higher amount based on pre-existing ailments.

• The type of cover and sum insured also determines the cost of the premium. If you go for a comprehensive health insurance cover with multiple additional riders and extra value-added services, the insurer is, by default, going to charge you a higher premium amount. The same applies to fixed payout plans, such as critical illness cover.

• If you are a woman, you are lucky. Most insurance companies in India charge a lower premium for women's lives in comparison to men. This is because women are subjected to less hazardous working environments than men, and women are smarter than men when it comes to making healthy choices. Since the risk is less, so is the health insurance premium payment amount.

• If you are a regular insurance news viewer, you must have come across the phrase 'the earlier you buy, the lesser the cost of the premium.' This is true; just think about it. When you are young, your body's healthy and more capable of undertaking stressful situations; hence the risk of disease is less. This is in stark contrast to your health condition when you are old and more vulnerable. So buy online today on Coverfox and live a stress-free life.

• When you have finally decided to buy a new health insurance policy, your insurer will ask you about your family's medical history. This is a very important step, do not provide false information as it will cost you a lot of money during the time of claim settlement. In fact, the insurer might outright reject your claim altogether! The insurer has to take into consideration the risk of family diseases, especially the ailments to which you are genetically disposed of. If your parents have diabetes, you are more likely to suffer the same in the latter years of your life. Therefore, the risk of medical health complications is more significant in comparison to a person who does not have any chance of pre-existing diseases.

• When you have reached a certain age limit, the premium will be charged a little higher based on the threshold. The insurers have decided this threshold to be the age of 45 years and above. Post the age of 45 years and above, it is mandatory (by some insurers) to furnish a medical health report (full body check-up) in order to avail of a new health plan.

• There is one crucial factor that might take a toll on your wallet, especially when it comes to determining the health insurance premium amount. This is with regard to your lifestyle habits. Many people lead an unhealthy lifestyle that consists of smoking and consumption of alcohol. Substance abuse, in the long run, can do significant damage to your body. You are more likely to visit the hospital due to alcohol and smoking-related complications/critical illnesses. Therefore, the premium charged to smokers and drinkers is generally higher.

If you are still confused about health insurance premiums, call us on 1800 209 9930 and let us handle the rest.