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Factors Affecting Your Health Insurance Premium

By Finserv MARKETS - Jan 23,2019
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Factors Affecting Your Health Insurance Premium

The aphorism, “health is wealth” is a timeless quote that has growing importance now, more than ever. Rapid changes in lifestyle and technology have led to various health challenges and protecting ourselves from them should be our topmost priority. One of the ways you can achieve this is by purchasing the right health insurance that can offer a host of benefits. Today, there is a plethora of health plans available for customers to review and purchase. With an insurance, an individual can be better prepared to deal with a medical emergency. So how is health insurance premium calculated? There are some key factors that affect the computation of your insurance premium. Let’s look at these to help you make an informed decision. Your insurance premium will be calculated based on a variety of factors. 

Factors Affecting Your Health Insurance Premium

Here are some of the key factors that affect your health insurance premium and help you make an informed decision. Let’s consider some of them in the following section:

  • Pre-existing medical conditions

The applicant will be required to submit his / her health records to the insurance company. This is mostly done to gauge whether the potential client has any pre-existing health conditions or not. Many providers don’t cover individuals with a pre existing disease, and those who do, generally charge higher premiums. If the policy doesn’t cover pre-existing conditions, then the policyholder will have to bear the cost of medical bills arising due to the pre-existing condition.

  • Family medical history

If your family members suffer from specific medical conditions, then your insurance provider will charge you a higher premium. This is primarily because genes play an important role in determining the functioning of our bodies. Their impact simply cannot be underplayed as many medical conditions have a genetic basis.

  • Body Mass Index (BMI)

Individuals with a higher body mass index are susceptible to diabetes, heart problems and joint problems. Hence, they are charged a higher premium as compared to a person with a low or normal BMI. You can use our bmi calculator to keep a check of your BMI number.

  • Injurious vices

Many health insurance companies refuse services to individuals with habits like smoking, snuffing or chewing tobacco. This is because they are vulnerable to life-threatening conditions like cancer and heart problems. Companies covering such people charge a higher premium for their mediclaim policy.

  • Gender

There is a different premium rate for men and women. This is based on the assumption that women are more likely to be cautious in terms of taking preventive measures, regular health check-ups etc.

  • Age

It’s a fact that as we grow older, our immunity and overall health weakens. This implies frequent visits to the doctor and consequently higher medical bills. That’s why a young individual is charged a lower health insurance premium as compared to their older counterpart.

  • Profession

If you work in environments where you’re exposed to hazardous chemicals, radiation and dangerous substances, then the premium charged will be more than the average and, in some cases, even higher.

It is advisable that you research carefully before opting for a health policy. What’s more? You can apply for your health insurance online in an easy, convenient and hassle-free way and reap numerous benefits.

Now that you know what factors influence your premium amount, you can compare and choose a health insurance plan that suits your health needs and fits your budget.

Read our top blogs to know more about health insurance in India:

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522