Health Insurance Premium Calculator

A health insurance serves the purpose of protecting one’s savings from all medical expenses that may arise in the future. It enables you to be financially-prepared for sudden medical exigencies that cut a hole in your pocket when you are not armed with a health insurance policy. Such policies empower you with a reimbursement/cashless claim facility for all eligible medical expenditures, if and when they occur. This reimbursement/cashless claim facility is the result of a planned investment in the form of premium payments made towards the health insurance policy over a specific period of time.

Investing in health insurance (medical insurance) generally does not feature among the top priorities for youngsters as they believe that they are decades away from their old age, and hence, have sufficient time on their hands to start planning for a health insurance policy. However, unfortunately, not all medical needs give you enough time to financially plan for it. Besides, not every medical condition is the result of old age. It might also be lifestyle diseases, which is now rampant and consistently on the rise. Such diseases might happen due to excessive drinking, smoking and such other unhealthy dietary and lifestyle habits.

Most importantly, it is essential to start investing in an affordable yet efficient health insurance policy at an early age as the younger you start, the lower will be the premium amount payable. What’s more, paying towards such a policy over a longer duration will also make you eligible for claims against most diseases which have a set waiting period.

Now, the question is – How can you use the Medical Insurance Premium Calculator to arrive at the premium that will be the best suited for your health insurance requirements. Here are the steps that you should follow:

  • Mention the required health-related details that are parameters for the Health Insurance Premium Calculator to calculate your premium amount
  • Browse through the features and benefits being offered by leading insurance companies on their plans and compare them

  • Opt for the one that suits your financial objectives the best

What is Health Insurance Premium?

The pre-decided amount of money that you pay towards your health insurance policy at regular intervals is referred to as the ‘premium’. This makes you eligible to avail the medical coverages for a period, as mentioned in your policy document. You have to mention the necessary details for the medical insurance premium calculator to display the premium amount that you would have to pay. These details include pre-existing diseases (if any), sum insured, age, number of members to be covered, etc. They act as the parameters based on which your premium amount will be calculated. The benefits detailed in the policy will be paid by your chosen insurance company in case of an unpredicted medical emergency or on the diagnosis of a disease, as per the terms of your policy.

Benefits of Using of Health Insurance Premium Calculator

The key benefits of using a health insurance premium calculator are:

  • A health insurance premium calculator is a free tool easily available online.
  • It helps by simplifying the complex calculations involved in determining the health insurance premium and thus provides a quick result for the health insurance quotes.
  • Knowing the right amount of premium makes it easier for financial planning.
  • A health insurance premium calculator helps by comparing quotes across multiple health insurance plans.
  • You can customize the input in order to determine the optimum amount of premium suitable to your income earned.

Significance of Medical Insurance Premium Calculator

Selecting a health insurance policy that is best suited for your unique needs appears to be quite a task as you have to opt for one from an extensive range of policies offered by a wide range of insurance companies. It requires you to thoroughly research, compare and analyse the various terms and conditions, and then choose a policy. However, the efforts of choosing the right health insurance plan are worth it! Here’s how the health insurance premium calculator makes choosing a suitable plan easy for you:

  • The Health Insurance Premium Calculator helps in getting an accurate idea about the premium payable, as per your financial objectives and medical requirements, before you take a final decision regarding the policy that you want to opt for.

  • The Health Insurance Premium Calculator displays all the available health insurance policies, as per your requirements, so that you can compare between them. This makes the decision-making process comparatively hassle-free for you.

  • The Health Insurance Premium Calculator also displays the applicable add-on riders on every health insurance policy suitable for your unique needs. This not only gives you the flexibility to browse through them at one glance, but also the convenience to opt for them without having to visit websites of insurance companies individually.

  • The Health Insurance Premium Calculator enables you to conduct an in-depth research all by yourself and become aware of the options available to you, even before you approach various insurance companies and agents. This way, the process of choosing a health insurance policy becomes seamless for you, assisting you in taking a well-informed decision.

Factors Affecting Health Insurance Premium Calculator

Let’s discuss in greater detail about the factors considered while determining health insurance premium. This will give you a clear insight into the parameters that are usually evaluated by insurance companies for calculating your premium amount.

  • Charges incurred for marketing initiatives and services: These charges include the expenditures that the insurance company has borne as a part of operational and designing costs, marketing and promotional initiatives, advertisements and product leaflets, brokerage and commission, etc. In short, this is the amount that the insurance company has spent in planning the health insurance policy and making it accessible to clients. The costs associated with this are retrieved through the premiums that policyholders pay.

  • Underwriting of health insurance policies: Health insurance policies are categorised under several classifications like individual health insurance, group health insurance and family floater health insurance. The purposes that these policies serve is evident from their names itself. For instance, individual health insurance policies offer Mediclaim benefits to the individual who is the policyholder, while group insurance is tailor-made to enable employers to extend health insurance benefits to their employees. On the other hand, a family floater plan is customised to protect an entire family from emergency medical situations and diseases. Evidently, the salient features and benefits offered by these health insurance plans are usually similar and often overlap. As a result, insurance companies have to design them very carefully, weighing each term and condition on policies minutely and ease out the possible risks. After analysing these factors, insurance companies decide the reasons and parameters on which it can accept and reject coverage applications. These precautions enable them to avoid any scope of losses.

  • Morbidity rate: One of the primary factors that affect the premium rate is age. Older the policyholder, the greater is the chance of him/her requiring emergency hospitalisation or being diagnosed with a critical illness for which he/she is covered, as per the policy documents. The scope of such applicants having a pre-existing health condition is also comparatively higher than that of a younger person. These factors imply that the sum insured of such applicants will also be greater, automatically pushing up the premium amount payable. Hence, the chances of an elderly person being offered a health insurance policy reduces considerably as they are viewed as high-risk applicants.

  • Personal medical history: Most insurance companies check the medical tests of applicants with pre-existing illnesses or a medical history to ascertain their current health conditions. Check-ups are also conducted to confirm present drinking and smoking habits, existing health conditions and health background. These check-ups enable them to be assured of the authenticity of the information provide by applicants in the Mediclaim form that they have submitted. An existing medical condition or medical history means that an applicant may have to pay a higher premium. These are some of the parameters that are assessed by the underwrites while generating premium rates payable by applicants.

  • Factors Affecting Health Insurance Premium: Marketing Expenditures: A substantial capital is allocated for effective marketing initiatives. This amount generally comprises of the premiums collected from policyholders. This is required for formulating insurance policies, company operations and then executing marketing strategies like advertisement, brochures, etc.

Eligibility for Buying Health Insurance Plan

  • Entry age for adults generally range from 18 years to 65 years. In some exceptional cases, some health plans extend the maximum entry age from 70 to 75 years.
  • For children who can be insured, the entry age varies between a minimum of 90 days to a maximum of 18 to 25 years.
  • Medical tests are required only for individuals over the age of 46 years

  • Marketing Expenditures: A substantial capital is allocated for effective marketing initiatives. This amount generally comprises of the premiums collected from policyholders. This is required for formulating insurance policies, company operations and then executing marketing strategies like advertisement, brochures, etc.

Factors to Reduce the Health Insurance Premium

Here are five ways to reduce your health insurance premium:

  • Family Floater Plan: Buy a family floater plan for you and your entire family. It is better than purchasing individual health plans for each family member. Since multiple members of a family are covered under a single plan, the health insurance premium automatically decreases.

  • Voluntarily Deductible: A deductible is a mandatory amount which a policyholder has to pay during the event of a claim. A voluntary deductible is an amount chosen by the policyholder at the time of buying the policy. A higher voluntary deductible results in lower health insurance premiums.

  • No Claim Bonus: A NCB is applicable to policyholders who do not file a claim in the previous year. The NCB can help you get additional coverage without an increase in your health insurance premium during the time of renewal. Hence it is best avoid making claims for treatments with a small bill.

  • Multi-Year Plan: Buy a multi-year plan where the premium for 2-3 years is paid at once, thereby you receive a discount on the total premium payable.

  • Online: Buy an online health insurance plan. Online health plans are much cheaper than health plans bought from offline sources like agents, as they are sold directly by the insurance company.

Tax Benefits on Health Insurance Policies

Apart from being able to avail medical coverages on unforeseen hospitalisation or diagnosis of illness, as per the policy terms, policyholders are also eligible for tax benefits under Section 80D of the Income Tax Act, 1961. The payable premium attracts tax exemptions under this section, up to Rs. 25,000 in a particular financial year, applicable to citizens below the age of 60 years.

For senior citizens, that is, policyholders of 60 years and above of age can avail tax exemptions of up to Rs 50,000 in a financial year, under Section 80D of the Income Tax Act, 1961. This means that senior citizens get higher tax exemptions. The health insurance premium calculator is designed to make you aware of the tax exemptions that you can avail on your premium amount under Section 80D of the Income Tax Act, 1961.

The policyholders of Family Floater health insurance plan, which covers dependent family members (spouse, children and parents) are eligible for combined tax exemptions of up to Rs 75,000 annually, under Section 80D of the Income Tax Act, 1961. Further, policyholders can avail a tax exemption of up to Rs. 5,000 in a financial year within the overall limit, under Section 80D of the Income Tax Act, 1961, on yearly health check-ups. All the tax exemptions applicable to you can be calculated on the health insurance premium calculator. However, you need to make your premium payments via cheque or card or internet banking to making the most of the tax benefits. Cash payments towards health insurance premiums are not eligible for tax exemptions under Section 80D of the Income Tax Act, 1961.

Premium Calculation Process Using a Health Insurance Premium Calculator

The process for calculating health insurance premium through a health insurance premium calculator may not be the same across all online platforms, but it usually follows a standard pattern. Here’s the usual process that is followed:

  • Go to the health insurance premium calculator and mention the name of your city, followed by your pin code and yearly income
  • Select the number of members you want to include in your health insurance policy in the relevant field of the health insurance premium calculator page. For instance, if you want to opt for an Individual Health Insurance policy, you will have to insert one. If you are thinking of getting a Family Floater Health Insurance plan, mention the number of dependent family members (spouse, children and parents) you want to get covered through the insurance plan and their age.

  • Select the ‘Proceed’ option

  • Mention your contact number and existing medical status
  • Select the ‘Proceed’ option to access the available health insurance policy options, as per your medical needs and financial goals

How Coverfox Helps in Premium Calculation?

Skip the hassles of research and analysing the suitability of each health insurance policy that the innumerable insurance companies have in offer. Being a complicated process, it proves to be time-consuming and leaves you puzzled about whether you have chosen a policy that is best suited for you.

Simply pick up your phone and reach out to our experts! They are equipped to guide you with your unique insurance needs, based on your financial objectives, accurately calculated on the health insurance premium calculator. Coverfox can make the process of selecting an effective health insurance policy seamless for you through end-to-end assistance. We suggest health insurance policies, based on whether their features are aligned to your health and investment needs. Coverfox ensures that you do not opt for covers that aren't essential for you. Not just during the decision-making process, we assist you in post-sales, with policy renewal and urgent reimbursements on claims.

Click here, enter your contact number and select the "Get an expert to call me now" option to get started. We will get back to you and guide you through the health insurance selection procedure, through the use of the health insurance premium calculator.

How to Determine Premiums for Health Insurance?

Premium eligibility for a health insurance plan is determined by several factors:

  • Number of individuals the health cover is for
  • Age of the individual(s)
  • Tenure of the health policy
  • Type of coverage, sum insured and rider(s) opted for
  • Hereditary medical conditions
  • Presence of pre-existing illnesses
  • Gender – women are eligible for lower premiums than men
  • Field of work or profession
  • Marital status
  • Location of residence

How to Use the Health Insurance Premium Calculator?

The integration of the health insurance premium calculator in the official websites of leading health insurance companies has digitalized the premium calculation process. While making manual errors was avoidable earlier, the digital tool has made life hassle-free for insurance companies and individuals looking for health insurance. In short, it has simplified lives, enabling error-free premium calculation in a matter of a few seconds in just a few clicks. All that the interested individual needs to do is enter the required information like age, gender, number of individuals to be covered, residential location, etc. to automate the process of premium calculation.

Frequently Asked Questions

Are there taxes levied on insurance premiums?

Yes, GST is applicable @ 18% on insurance premiums payable.

How to pay a premium? What are the modes of payment available?

There are multiple ways to pay premium. To name a few: Credit/Debit/Net Banking/Website/Cheque/ECS/Branch Banking/Check Pick Up Facility/Wire Transfer/NEFT/RTGS/Direct-Auto Debit/Standing Instruction/Paytm/PhonePe/Google Pay and Airtel Money.

What is average health insurance premium?

Health insurance premium will depend on the policy type i.e. individual or family, floater, sum insured, age of the insured and other factors. On an average, the premium for a sum insured of Rs. 5 lakhs that an individual might have to pay around Rs. 5,000 to Rs. 10000, depending upon the plan and insurer.

Are health insurance premiums tax deductible?

Yes, as per Section 80D of the Income Tax Act, you can claim deductions on premiums paid towards a health insurance policy of up to ₹25,000 for spouse, self and dependent children. Additional deduction of ₹25,000 in case of dependent parents below 60 years of age and ₹50,000 in case the dependent parents are above 60 years of age.

What is a good monthly premium for medical insurance?

A premium amount which is comfortable on the pockets of the policyholder can be considered as a good monthly premium amount. As we know that each person is different and so is the financial capacity, the monthly premium amount for each and every one would be different.

What does paying a premium mean in the context of insurance?

There is a certain amount that you need to pay towards your chosen insurance policy at a pre-decided frequency – annual/half-yearly/quarterly/monthly, in return for the insurance coverage you have selected. This amount is referred to as ‘premium’.

What is a premium cost?

There is a certain amount that you need to pay towards your chosen insurance policy at a pre-decided frequency – annual/half-yearly/quarterly/monthly, to become eligible for its insurance coverage when needed. This amount is referred to as ‘premium’.

What is the health insurance premium rate for 2019?

Health insurance premium rate differs between policies across health insurance companies, depending on various factors like coverage opted for, age, gender, presence of pre-existing illnesses, professional field, hereditary illnesses, residential location, etc.

Customer Reviews
Average Customer Rating:
Health Insurance Premium Calculator4.5 / 5 ( 17 reviews )
Write a review
Leela Antony
You are doing a great job!
Insurance is known for being complex and time-consuming. Thanks Coverfox for making it simple for me
05 Mar
Pooja Makhija
Good serivce
Purchasing a medical insurance plan had seemed like a task till I came across Coverfox. They suggested plans that fit my needs and guided me throughout the purchasing process. Without Coverfox I probably wouldn’t have bought the right policy for myself. Keep it up!
05 Mar
Ahemad Ali
Thank you for policy
I did not have a very clear idea about the differences in features and benefits of different types of health insurance policies. Therefore, I was not sure about the one that I should buy. The team at Coverfox explained everything in detail and recommended a policy, according to my requirements and premium I want to pay. They have closely guided me step by step throughout the process. Thank you Coverfox.
05 Mar
Navin D'Souza
Service Accessible
The expertise of the customer representatives at Coverfox, along with the accuracy of health insurance premium calculator, has made hassle-free services accessible to me. I’m glad that I chose Coverfox.
05 Mar
Lipika Pal
Very Satisfied
I have been with Coverfox for some time now and am very satisfied with their efficiency and professionalism. They have assisted me with purchasing my health insurance policy as well as its renewal. I pay my premium on time, while Coverfox ensures that I don’t have to follow-up with my insurance company for policy renewal.
05 Mar
Deepak Nambiyar
There are so many health insurance policies offered by so many companies that it becomes very difficult to go through all of them and take a decision. I called Coverfox and they helped me with my problem. I have already recommended Coverfox to many of my friends and acquaintances. – Priyanka Mehra I had to be urgently hospitalised and I cannot thank Coverfox enough for expediting the claim settlement process with my insurance company. Cheers, Coverfox!
05 Mar
Keshav Sharma
Very helpful
Coverfox has been very helpful in finding me a health insurance policy with the features I was looking for and premium amount that suits my pocket. Thank you Coverfox for the smooth and hassle-free end-to-end service.
05 Mar