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One of the major factors that influence health insurance premiums is the age of the policyholder. This is primarily due to the fact that as you age, the risk of developing diseases and medical conditions tends to increase. Also, as you get older, the chances of developing critical illnesses go up. Therefore, insurance providers increase the health insurance premium to offset this rising risk. 


In addition to the above reasons, the cost of healthcare is also on the rise. This is another factor too that leads to a rise in health insurance premiums as you age. The bottom line is that the later you opt for a health insurance plan, the higher the premiums are likely to be.

Important Update (Dated May 30, 2024) – Good news for Health Insurance policyholders! According to the Master Circular on Health Insurance Business 29052024 rolled out on May 29, 2024 by IRDAI, insurers are to decide on the request for cashless claims within 1 hour of receiving the request. Also, the final claim is to be granted within 3 hours after the policyholder’s discharge from the hospital. Insurers have been directed by IRDAI to establish necessary systems and procedures for this process by July 31, 2024. The Master Circular on Health Insurance Business 29052024 circular is available here -

Health Insurance Premiums Based on Age

One of the prime factors that influence how premiums are calculated is the applicant’s age. As a general rule, the premiums on a health insurance plan increase as the age of the policyholder goes up. The main reason behind this is that as a person grows old, their chances of falling ill and catching chronic diseases increase, especially for senior citizens. Let’s take a more detailed look:


  • Increase in Risk of Diseases: With age, especially during the 40s and 50s, many health-related ailments may start to appear. People may start to develop chronic conditions like cardiac-related issues, diabetes, kidney or liver problems, which often require hospitalisation.

  • Critical Illnesses: As an individual's age increases, their risk of critical illnesses also increases. The chances of developing critical illnesses like cancer, stroke, neurological diseases, among others, increase as a person grows older. Thus, health insurance premium costs increase proportionately to cover possible critical illnesses.

  • Medical Inflation: The cost of good healthcare has gone up significantly in India. If you want top-notch treatment at a private hospital, you will have to be ready to face a hefty medical bill that can wipe out a large portion of your life savings. In case a patient needs an extended stay at a hospital, the cost of treatment can even run into crores. Thus, health insurance premium costs increase with time to keep up with medical inflation.

Why Should You Get Health Insurance at an Early Age?

Here are a few reasons as to why you should get a health insurance plan at an early age:


  1. Lower Premium Cost: As mentioned above, the cost of health insurance premiums increase with a person’s age. If you get yourself a health insurance plan when you are young, in your 20s or 30s, you will have access to significantly lower premium amounts and enhanced protection.

  2. Waiting Period: Most insurance companies have a waiting period or conditions like maternity, certain types of diseases and pre-existing conditions. When you get health insurance at an early age, there is a good chance that you are not suffering from any of the conditions under the waiting period. If you contract one of these conditions in the future, your waiting period will be exhausted. You will then be able to get coverage for these conditions.

  3. Increased Financial Protection: Most young people in good health don’t expect to suffer from any diseases or illnesses. However, with the hectic lifestyle and increased stress from work, even young people these days are suffering from strokes and other problems. Moreover, critical illnesses like cancer can strike anyone at any time, without a warning. It is always a good idea to have a health insurance plan in place, even if you are young.

How to Reduce Your Health Insurance Premiums?

Even if you did not get an insurance policy at an early age to enjoy lower premiums, there are many steps you can take to get reduced premium rates:


  1. Long Term Insurance Policy: If you look for a long term insurance policy that covers 3 or more years, insurance companies will more likely provide you with reduced premium rates.

  2. Remove Additional Covers: When buying an insurance policy, you may be tempted to get additional covers on top of your basic insurance. Make sure you do not buy any unnecessary add-ons. Doing so will keep your premium amounts low.

  3. Use Your No Claim Bonus: If you are eligible for an NCB, make sure you claim it and get the insurance company to reduce your premium cost.

  4. Choose Family Plan if you Have Dependents: If you have a family and kids that depend on you financially, buy a family floater plan for the family’s protection. health insurance plan for family are cheaper and more convenient than individual insurance for all family members.

  5. Opt for Deductibles/Copay: If you opt for copay or deductible in health insurance, you will have to pay a small portion of the hospital bill. In exchange, the cost of your health insurance premiums will be reduced.

  6. Healthy Lifestyle: If you have adopted a healthy lifestyle and are in fit shape with no drinking or smoking habits, you might get lower premium rates compared to someone of your age in poor health.


    Read More: Difference Between Copay, Deductible and Coinsurance

To Conclude

There are a ton of health insurance plans online that you can choose from. Health insurance has become an important tool for many people to protect their finances and get cover for medical expenses. If you are looking to buy health insurance, you can check out the various health insurance plans available at Bajaj Markets and select one that fits your needs.

FAQs on Things to Consider Before Buying Health Insurance

Do health insurance premiums increase?

Yes, health insurance premiums tend to increase with the age of the policyholder, as the risk of disease and illness increases with age.

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