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Guide to Calculate Heath or Medical Insurance Premium

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Living healthy live is something that most of us yearn for. In order to achieve this, people resort to many activities such as yoga, regular exercise and take other related measures. A medicalinsurancepolicy serves as a beneficial financial instrument for an individual's road to a secure life. Medical insurance provides financial assistance for the treatment of critical illness or accidental losses. The health insurance plan includes covers for pre-hospitalization, hospitalization, post-hospitalization, emergency ambulance charges, health checkups fees, etc. These benefits make health insurance a must buy for every individual and household. However, most people when furnished by the details of premium amount for a particular set of coverage, they seem to accept that at it as given. Do you know that you are not always required to pay the amount that is asked of you? You may have a say in the determination of the premium amount within a defined space.

Factors on Which Health Insurance Premium Depends

• Medical History

Pre-medical tests or medical history is required to calculate the health insurance premium based on the results. In some policies medical exam may not be required but the present health conditions, family health background, and lifestyle-related habits are taken into consideration. Smokers, usually, have to pay a higher premium.

• Age

Age is asignificant determining factor while calculating health insurance premium. The premium increases with the age of the insured. The older the person is, chances are they are more prone to critical illnesses, such as cardiovascular diseases, kidney disorders and the likewise. This is the reason why premium for a senior citizen health insurance plan is usually higher than a basic health plan.

• Policy Tenure

The premium for a one-year health insurance plan will be lower than a plan which is for a longer period. However, the insurance company provides a discount if you buy a long-term policy.

• Plan Chosen

The chosen plan by the insured is going to affect the premium cost. The lower the risks involved the lower the premium will be and vice-versa. A carefully chosen plan on a health insurance premium calculator will help you get numerous benefits and desired premium for you.

• No-claim Bonus

It is the discount that you get on your insurance premium for all the years that you haven’t made a claim. It is an important factor to be considered before calculating the health insurance premium.

• Lifestyle

In case you are a smoker or drink regularly, the probabilityof you paying an extra amount of premium is more. In fact, the insurance company can refuseto issue your policy.

Conclusion

Hence, people with previous medical history have to shell out little more compared to other. Every insurer lists down the diseases and ailments that are excluded from coverage. Hence one must therefore carefully choose the policy by exhaustively going through the list of excluded illness, as this is critical. Sum insured: The amount that the insured requires as compensation benefit will positively affect the rate of premium. As a matter of rule, higher the Sum Insured higher is the premium amount. Therefore, one needs to make a conscious decision and strike a balance between these two components. Individual/Family floater: The calculation of the premium of the medical insurance will also depend upon the type of policy that is desired by the applicant. There are two types of policy to choose from – individual and Family Floater. All these factors are taken in to consideration by the insurance provider to reach at a definite premium amount on which the insurer is ready to provide cover to the applicant.

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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