How is Parents Health Insurance Policy Premium Calculated ?

Posted on: Feb 13, 2019 | | Written by:

How is Parents Health Insurance Policy Premium Calculated ?

Published on October 03, 2022. EST READ TIME: 3 minutes

Truly, parents are our most valuable asset in life. Your parents lay the foundation of your life unarguably their entire life revolves around you. They have spent years sacrificing their life goals just to ensure your needs are fulfilled, however after a certain phase of life, it’s you who has to take care of them. With growing age, they are more probable to diseases. They are prone to infection and their immunity level decreases, which may lead to frequent visit to the Doctor’s clinic or an unprecedented surgery. To ensure quality medical assistance without creating financial imbalances, health insurance for parents. These plans are uniquely designed for every age to ensure total health care.

While buying health insurance or medical insurance for parents you have to choose the coverage and benefits very cautiously. Generally, health insurance premium for parents is usually on the higher side, higher the age higher the probability of risks. In the long run, medical insurance premium for parents can also help you save tax up to Rs. 35000 under section 80D.

Things to Keep in Mind While Buying Health Insurance for Parents

• Entry age –

Most of the insurance companies keep no restriction in entry or exit age, however if there is any you need to check if your parents fit in the age bracket.

• Pre-existing diseases –

There are two types of pre-existing diseases, some diseases are permanently excluded from your policy for example cancer or HIV, however some can be covered after a waiting period of 3-4 years. Always check the list of pre-existing diseases before buying a health insurance for parents.

• Renewal Age –

Ideally there should be no restriction in renewal age. HDFC ERGO offers my health: medisure classic insurance with lifetime renewability. This means you can renew your parents’ policy for lifetime, giving them health cover forever just by ensuring timely renewals.

• Waiting period –

Every policy is unique. Check the waiting period table before buying a health insurance for parents, usually there would be a waiting period for pre-existing diseases.

Factors that Affect Insurance Premium

1. Pre-existing medical condition -

Medical history is a major factor that affects your insurance premium. While choosing for a policy it is mandatory to choose a certain to submit your health records. If you have had certain health issues in the past then the insurance company can either choose to allow it in or decide not to allow it in their policies. If the insurance company does not bear the cover a certain disease, then the policy holder usually bears the cost. This eventually increases or affects the amount for premium. Thus, medical history is a major determinant of insurance premium.

2. Family Medical History -

Genetics do have a role to play in shaping up your personality and over all life structure. Even your physical and emotional health is greatly affected by your family history. In case your family history records illnesses like heart disease, diabetes or cancer then it is assumed by the insurance companies that the probability of you contracting these diseases are also pretty high. In that case the size or amount of your premium is going to be higher than the amount that you needed to pay in case your family would not have any such problem.

3. Age -

One of the most vital factors that can affect your health insurance premium is your age. It is a matter of common sense that a younger person runs lower health risk in comparison to a person who is older. Eg: The chances of a 25-year-old man falling sick because if heart condition is certainly less likely than a man of 65 years. However, there are exception to this rule. There are people who have proven to be notably fit and healthy at older ages while people have been quite unhealthy at an age as young as 25. However, the general rule stays that people who are younger have lower chances of falling sick or visit doctors. Hence health insurance premium payable for a younger person is lesser than an older man.

4. Gender -

Many insurances policy premium amounts depend upon gender. This may sound strange but there are certain reasons why this difference is maintained. Years of medical research has proven that women visit doctors’ way more than men do, they are prone to taking prescriptions and are also often subject to chronic disease. Thus, it goes without saying that on more than one instance it has been found that women have had to pay a higher premium.

5. Profession -

Your choice of profession can also affect your health insurance premium. People working in profession which expose them to hazardous environment like constructions, radiation, substances are at high risk of falling prey to various diseases like cardiovascular and various other life-threatening diseases.

How to Calculate Health Insurance Premium?

You can follow these steps and easily calculate health insurance premium online:

• Go to https://www.hdfcergo.com/health-insurance/health-insurance-premium-calculatorand click on the “Calculate my health insurance premium” tab.

• Enter the required details, such as plan type, name, date of birth, location, coverage, medical history, required sum insured, policy term, family members to include in the policy, mobile number, email ID, and more.

• Based on the details entered, the website will display the health plans that best match your requirements.

• You can then make necessary changes to the coverage features to arrive at a suitable premium.

Conclusion

Before buying a health insurance plan for parents always check the list of coverage, exclusion and waiting period. The above factors also help in deciding the health insurance premium for parents. You can also look for health insurance for parent’s premium calculator and get the right premium for your parents.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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