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Age and Health Insurance

For a very long time, a large proportion of the Indian population did not have access to health insurance. A majority of people in rural areas still don’t have health insurance coverage. However, the need for health insurance was highlighted when thousands of families lost their life savings by paying hefty hospital bills during the COVID-19 pandemic.

The pandemic created a lot of awareness about the need for a good health insurance plan to stay financially protected in case of unexpected medical expenses. However, not many people are fully aware of how health insurance works. In this article, we’ll take a look at how age affects your health insurance premiums and the steps you can take to bring down your premium amount.  

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. Family floater plans are cheaper and more convenient than individual insurance for all family members.

  5. Opt for Deductibles/Copay: If you opt for copay or deductibles, 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.

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 Finserv MARKETS and select one that fits your needs.

Best Health Insurance Plans Available at Finserv MARKETS

FAQs on Things to Consider Before Buying Health Insurance

  • ✔️Is health insurance premium paid yearly?

    You can choose to pay your health insurance premiums yearly, monthly, quarterly or semi-quarterly.

  • ✔️How do I choose a health insurance plan?

    You should browse through all available health insurance plans online from different companies and choose one that best suits your needs.

  • ✔️How is health insurance premium calculated?

    Health insurance premiums are calculated based on various factors like the policyholder’s age, health history, lifestyle choices and much more.  

  • ✔️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.

  • ✔️Is it cheaper to get health insurance through an employer?

    Yes, getting health insurance through your employer may be cheaper as you will be part of a group insurance plan. However, a group plan may not fulfil all your needs and the sum assured will be lower than a regular plan.  

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