Health insurance is one of the most important financial instruments every individual should invest in. A health insurance policy helps in being prepared for unforeseen medical emergencies. Choosing the right health insurance plan that covers all your needs and is pocket-friendly is an important task. Also, the decision of choosing the right health insurance policy depends on numerous factors one of which is the policy premium. A health insurance premium calculator is your guide in understanding the cost of investing in a good health insurance plan. In this article, let us understand in depth all about the health insurance premium calculator.
Health insurance premium calculator as the name suggests is a type of tool that helps in understanding the premium amount for the health insurance policy. It is one the best timesaving and effective tools that gives a helpful understanding of the health insurance premium. To know the premium amount of a certain health insurance policy one needs to enter the required details like the city of the insured, coverage, duration of the policy, age, health insurance plan, etc. Once you enter all the details then the health insurance premium calculator within no time shall display the premium amount of the insurance plan you selected.
Health insurance premium is the amount paid by an individual to the health insurance company. This amount is paid to keep the purchased health insurance plan active so that medical and financial benefits it is offering can be availed in times of emergency. The premium amount of a health insurance policy depends on various factors like the health of the insured, the terms and conditions of the health insurance plan, the age of the insured, the family medical history of the insured, the insurance coverage opted and the benefits that the health insurance plan offers.
The health insurance premium is paid either in one single amount or in installments as per the choice of the insured. One can pay the insurance premium either in a monthly, quarterly, or yearly manner. The health insurance company uses the health insurance premium amount to help you pay the medical cost in times of medical emergencies. Thus, in this manner, one can safeguard financially in the event of unexpected health emergencies.
Following are some of the important features of health insurance premium calculators online:
It is easy to calculate mediclaim premium by answering a brief set of questions.
Each of the leading health insurance companies offers a tool to calculate health insurance premium online.
Skip the hassle of dealing with insurance brokers or requesting quotes from insurance companies for an estimated premium rate.
With the help of a health insurance premium calculator experience swift processing, as the premium rates are calculated within seconds based on your inputs.
The health insurance premium calculator online helps to estimate health insurance coverage costs and make informed decisions to secure the optimal health insurance plan in India.
Tax calculation also becomes easy given the entire amount of health insurance premium outlay.
Health insurance plans offer financial coverage similarly a health insurance premium calculator online offers the following benefits.
It helps to understand and gain insight into the projected expenditure related to health insurance premium online.
One can make use of the health insurance premium calculator to compare and calculate the mediclaim premiums of various health insurance plans. Thereby making a sound decision to buy optimal insurance coverage at a cheap premium amount.
Exploring and using the tool to calculate health insurance premium online helps save time and effort for the insured as it eliminates the need to reach out to an insurance broker.
Offers to help in making informed decisions.
Reduce the risk of errors as there is minimal manual intervention to calculate mediclaim premium.
The health insurance premium calculator is one of the most important tools that helps in understanding the complexities of a health insurance premium. So when you intend to explore the options of health insurance it becomes difficult to visit or meet every insurance provider. Therefore, a health insurance premium calculator online is a one-place stop that provides approximate premium amounts with a click.
For ease of calculation, all the leading health insurance companies have created the online health insurance premium calculator very easily. By inputting some basic information and within a few clicks one can get a complete understanding of the health insurance premium amount. Let us understand in detail how to use the health insurance premium calculator with the help of a stepwise guide that determines the health insurance premiums:
The first step is to open the health insurance premium calculator online.
Secondly, enter the number of individuals you wish to cover under the plan.
Thirdly, input the ages of all individuals included in the coverage.
The age of the eldest individual especially in a family floater plan can change the entire dynamics of health insurance premiums for the entire family.
Did you know that your health insurance premium can change with your Pincode? Yes, that is true since PinCode determines where you stay and some places are more expensive than other locations. Hence some companies have bifurcated zones for higher premiums as well.
In this step, you need to enter the health insurance coverage amount that you wish to take. This would determine your total premium outlay.
Sixth Include any additional relevant details as required. Upon completion, click on the 'Calculate Premium' button.
Seventh The calculator will promptly display an estimated premium amount based on the information and details inputted by you. Kindly note that the above-given steps are generic in nature and the process of using a health insurance calculator online might vary across different insurance providers.
A health insurance premium calculator is one of the most easiest and helpful tools to understand the expected premium amount. However, you need to fill in certain details that will help the tool to calculate health insurance premium online. Following are the details that one needs to feed into the health insurance premium calculator online.
Age: You need to enter the exact date as the mediclaim premium is dependent on the age of the person, especially the eldest one in a group. Health insurance premium rises with age.
Gender: One needs to enter the gender as insurance premium differs for men and women.
Family’s medical history: You need to enter medical conditions if any and provide details of the same. Chronic ailments, other pre-existing diseases, if any, and regular medication, if any, could change the insurability of the individual and also affect the premiums. Individuals with a history of diabetes, high blood pressure, early heart attacks, etc. could be at a higher health risk than others. Hence, their premium and insurability could also change accordingly.
Body mass index or BMI: Affects the health insurance premium. If your body weight is higher than normal (according to the BMI chart), your health risk would be higher than others. So, if you are in the overweight or obese category, you would be considered higher risk than the normal BMI range of 18.5 kg/m² - 25 kg/m².
Insurance coverage and tenure: The sum insured or the coverage amount determines the premium as well as the tenure. The higher the coverage amount or the tenure of the policy, the higher the premium as the risk of the individual also increases subsequently.
Smoking habits: A study published in The Lancet Journal clearly states that 11.2%¹ of the world’s smokers are based out of India. Since smoking enhances health risks, your smoking habits could increase your health insurance premium as well. Thus, smokers usually pay a higher premium than non-smokers which needs to be disclosed to the insurer at the time of opting for the policy.
Location: The city you reside in affects the health insurance premium amount. Some insurers have categorised zones like Zone A (as most expensive zones like Delhi NCR, Mumbai region, etc.), Zone B (as next-in-line expensive locations) and Zone C as the rest of India. The premium is highest for Zone A, then Zone B and the same for the rest of India or Zone C.
The type of plan: This also determines the premium, as premium varies from indemnity to fixed benefit plans, from individual to family floater plans, and from base to super top-up plans. Thus, the type of health insurance policy is a strong determinant of the premium payable.
Rider: A rider is an add-on that you add to the base health insurance policy to enhance the benefits offered by the base plan. Add-on riders increase the premium amount.
Occupation: One needs to enter the type of job he/she does. Occupation is one of the factors that could affect the premium amount, especially in high-risk jobs.
The best way to calculate health insurance premiums is to use the premium calculator. This tool is helpful to calculate health insurance premiums online within seconds. You just need to enter a few details like age, gender, location, insurance coverage, health history, tenure, and plan, and you shall be able to get the probable premium amount for the plan selected by you.
In case you are looking for ways to reduce the premium of a health insurance policy then we got you covered. Below is a list of ways in which you can reduce the premium amount.
Additionally, all the insurance companies assess medical history so you can buy a health insurance policy at a lower premium amount at a young and healthy age so that you get maximum coverage at a lower cost.
Optimal insurance coverage: The premium amount of the health insurance policy is dependent on the insurance coverage. So opt for optimal coverage for which you can afford to continue paying the premium.
Co-pay and deductibles: The health insurance companies offer relaxation on the premiums if you choose to co-pay and/or deductibles.
Co-payment is a clause wherein you opt to pay a specific percentage of the claim irrespective of the total claim amount.
For example, if you have a co-pay of 10% for a sum insured of Rs 10 lakhs, then for a claim amount of Rs 1 lakh, you would have to pay 10%, i.e. Rs 10,000 and for a claim of Rs 5 lakhs, you would have to pay Rs 50,000.
A deductible is a fixed amount of money that you need to pay, say Rs 10,000 or Rs 50,000 which is fixed irrespective of the total claim amount of Rs 1 lakh or Rs 5 lakh.
Tenure: The tenure of the health insurance plan affects the premium amount. So if you choose to have a longer duration health insurance plan then the premiums shall be lesser as compared to short duration health insurance policies.
Explore and Compare: Nowadays numerous discounts and deals are available when you explore health insurance plans online. By availing of such discounts and deals you can reduce the premium amount.
No claim bonus: This benefit is offered by the insurance provider in terms of increased insurance coverage or a discount on the premium amount in the event of not filing an insurance claim during a policy year.
Apart from providing medical coverage, health insurance policies offer a tax advantage under Section 80D of the Income Tax Act of 1961. This means that the premiums paid for a health insurance policy qualify you for tax exemption under Section 80D, with a maximum exemption of Rs. 25,000 per annum for individuals below 60 years of age. Conversely, for senior citizens, this limit extends to Rs. 50,000 per annum.
For paying premiums for parents, the tax benefit is over and above the limit of individuals. So, you can avail a maximum tax benefit of Rs 50,000 (if you are less than 60 years of age and both your parents are less than 60 years of age), Rs 75,000 (if you are less than 60 years of age but either of your parents are more than or equal to 60 years of age) and Rs 1,00,000 (if both you and your parents are more than 60 years of age).
The health insurance premium calculator is an important and helpful tool that helps in calculating the premium amount within seconds. This tool saves a lot of time as there is no need to contact the health insurance provider or an agent to understand the premium details. The health insurance premium calculator online saves time and estimates the premium amount within no time.
Yes, GST is applicable @ 18% on insurance premiums payable.
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.
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.
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.
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.
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’.
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’.
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.
