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What Factors Contribute To Your Health Insurance Premium?

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A decade ago, health insurance policies were not considered to be too important in India. In recent times, people have started realizing how important and useful these policies are. In the cities and semi-urban regions of India, the lifestyle people lead is changing. In the fast-paced world, people are less focused on maintaining a healthy lifestyle. This is why a lot of people nowadays are suffering from health issues like diabetes, obesity, high blood pressure, kidney stones, etc.

It is needless to say that medical and healthcare services aren’t cheap nowadays. So, if you don’t want to burden yourself with the medical and hospital bills, it is vital that you buy a health insurance policy; not just for your own, but for your family members as well. Before you buy a health insurance policy, it is crucial to check and compare at least half a dozen policies. There are many factors that determine the premium of these plans. To help you know more, we have created a list of the top 10 factors that contribute to your health insurance premium.

  1. Age: Yes, your age is one of the factors that will determine your health insurance premium. Young individuals usually have to pay lower premiums because they have fewer diseases (both identified and unidentified) in comparison to older individuals. Hence, these policyholders are less prone to health issues. On the other hand, people above the age of 45 are more prone to different ailments. Hence, the premiums get higher in such cases.
  2. Pre-existing medical conditions: Before you buy a health insurance policy, you will have to showcase your own health records. The reason behind is to make sure that you are not suffering from any medical conditions. In case you have any pre-existing medical conditions, the insurance provider might include it in their policy, and charge a higher premium from you. In some cases, the policy provider might refuse to include the medical condition in their package.
  3. Your family’s medical history: If your family have any kind of medical ailment then, in that case, your premium might go up. There are many diseases that can easily pass through genes, and therefore the medical history of the family is taken into consideration. If anyone in your family has or had such a disease then it also makes you vulnerable to the same. Hence, the insurance company quote a higher premium.
  4. Your BMI: If your BMI (Body Mass Index) is on the higher side, you will have to pay a higher rate of premium. People who have higher BMI are usually more prone to health issues like diabetes, high blood pressure, heart problems, etc. At the time of pregnancy, people with higher BMI may also require specialized treatment. So, these things eventually lead to higher medical bills.
  5. Smoking/drinking: People who smoke and drink on a regular basis are usually more susceptible to serious ailments. Consumption of tobacco is also counted among such cases. In fact, some insurance companies may even refuse to sell a policy to people who are chain smokers or hardcore drinkers. These people are more vulnerable to cancer disease and TB. So, if you have the habit of consuming injurious substances, you will have to pay a higher rate of premium.
  6. Your profession: Yes, your area of profession is also taken into account at the time of calculating the rate of premium. People working in hazardous environments are more prone to physical injuries and illness. For example, a worker in a cement factory is more vulnerable to breathing-related health issue than someone who works in an IT company. Likewise, there are many areas of work that are considered to be dangerous for your health.
  7. Your gender: As per the health insurance companies, women are more likely to avail medical and healthcare facilities. They are more vulnerable to chronic diseases. This is why the premium quoted by the insurance companies is a bit higher when it comes to selling a health insurance policy to a woman.
  8. Your marital status: Married individuals are usually charged a lower rate of premium when it comes to selling health insurance policies. The insurance companies believe that married people usually live better and healthier lives. Plus, purchasing a policy that also covers your spouse can help you get a discount on the premium.
  9. The location of your stay: The city where you live also plays a role in determining your health insurance policy’s premium. If the city has an unfavourable climate or there is a lack of hygiene around, the premium might go up. The infrastructure and development in and around the city are taken into account.
  10. No insurance yet: People, who buy a health insurance policy for the very first time, usually have to shell out a higher rate of premium.

So, those are the factors that determine the premium of your health insurance policy. Next time when you decide to buy a policy,  you will find it easier to calculate the rate of premium.

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