5 Factors That Determine Your Health Insurance Premium

Have you ever wondered how health insurance companies calculate the premium you get charged for coverage? Well, they make their calculations keeping in mind certain factors that give them an estimation of your health and the probable risk you pose as a policyholder. In this article, we will take a look at a few such key factors that play a major role in determining the premium you have to pay. Let’s get started – 

1. Age of the policyholder

It is generally assumed that people of a younger age are less likely to fall ill. Thus, they pose a relatively lower risk for the insurer and pay lower premiums. So, a person who is 21 years old will be able to pay a much lower premium than someone who is aged 50 years for the same amount of coverage. Since age plays an important role in determining the premium you pay, it is always advisable to buy health insurance when you are younger. 

2. Presence of pre-existing health conditions

The presence of any pre-existing condition can have an impact on the premium you end up getting charged. This is because suffering from pre-existing diseases puts you in a relatively high-risk bracket for the insurer. 

3. Habits such as smoking

If you smoke, this habit will impact your health insurance premiums.  As a smoker, you are susceptible to a host of health problems which may see you make frequent claims in the future. This makes you a high-risk policyholder for the insurer and they will probably charge a higher premium. Never attempt to hide any information about your smoking habits from the insurance company. If you are asked, be completely truthful to avoid any hassles in claims later on. 

4. BMI

BMI stands for ‘body mass index’. If you have a higher BMI, you will most likely be charged a higher premium. This is because a higher BMI means you are at risk for diseases that affect the heart as well as conditions such as diabetes. 

5. The plan chosen

Finally, the health insurance plan that you choose also impacts the final premium figure. If you choose a higher sum insured, you will naturally pay a larger premium. Also, if you choose to enhance your coverage with add-ons like critical illness cover, you will incur a higher premium. You can try to make your health insurance plan effective by opting for a long-term policy. 

We hope that the information given here has proven to be an interesting read for you today and has helped you learn a little more about health insurance. Remember to keep your coverage renewed for continued protection against medical expenses. You can easily buy or renew individual or family health insurance online with ease these days. So, no matter how busy your schedule is, all it takes is a few minutes to keep yourself and your loved ones protected with coverage. 

Take care, stay safe, stay healthy.