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Does Health Insurance Premium Increase on Renewal?
The demand for health insurance has increased significantly after the COVID-19 pandemic, as more and more people realised the importance of having medical coverage. While we would like our premium to remain the same at every renewal, it is not always the case. Read on to discuss if health insurance premiums increase every year on renewal.
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- Does Health Insurance Premium Increase on Renewal?
Does Health Insurance Premium Increase Every Year?
Yes, health insurance premiums often increase every year or every few years. This is because you are more likely to get chronic diseases like diabetes, hypertension, etc. and degenerative diseases like osteoporosis. It leads to an increased liability for the insurer, who mitigates the risk by charging a higher premium. This is the reason why health insurance for senior citizens is expensive as older people are more prone to diseases and need extensive medical care
Another major reason for an increase in health insurance renewal premiums is medical inflation. Healthcare facilities and medical treatments in India are becoming more expensive with each passing year. Hence, insurance companies increase their premiums to cover these higher costs.
Factors Influencing Health Insurance Premium on Renewal
There are many reasons why your health insurance can become costlier at renewals. Take a look at some of the factors that influence health insurance premiums on renewal:
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Your Increasing Age
As you age, your body gets weaker and more susceptible to diseases and injuries. For insurers, covering older people presents a higher risk of claim settlements, which is why they charge a higher premium for the protection offered. This is also the reason why buying a mediclaim policy early in life when you are young and healthy is always recommended.
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Inflation in Healthcare
Healthcare expenses, like hospitalisation, medicine, surgery, diagnostic tests, etc., are becoming more expensive each year. As per Aon’s Global Medical Trend Rates Report, healthcare costs in India are expected to rise by 13% in 2025. So, to cover these rising expenses, your insurer increases your health insurance premium during renewal.
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Your Coverage Requirements
With time, your health insurance needs may change. You may want to increase your sum insured or switch to a family floater plan covering your spouse or children. You may also want to add riders to your policy to expand your coverage, which comes at an additional premium. All of these things change your coverage, which automatically increases your health insurance premium. So, as your coverage or sum insured increases, your medical insurance renewal premium will also increase.
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Your Claim History
Generally, your claim history may not have any impact on your health insurance premiums, as premiums are increased at a portfolio level. However, some insurers offer claim-based discounts, so you may have a lower premium if you do not file a health insurance claim.
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Your Overall Health Condition
Your overall health condition plays a significant role in determining your medical insurance premiums during renewal. Many health insurance companies in India assess your physical and medical well-being to evaluate the risk of future claims. If you develop any new medical conditions or your pre-existing conditions worsen, it may lead to higher premiums at renewals.
How to Reduce Your Health Insurance Premium?
Check out the tips below to lower your health insurance premium:
- Switch to an insurer that offers a renewal bonus or discount. Most health insurance companies in India offer a No Claim Bonus (NCB) for every claim-free year.
- Some plans also offer health insurance discounts on renewal premiums if you have met specific fitness goals, such as achieving a target step count or working out.
- Try to buy health insurance at an early age. The sooner you buy a mediclaim policy, the better. It will be affordable, and you will have served your waiting period before filing a claim for any illness or disease.
FAQs
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Q1. Does health insurance premium go up every year?
Ans: Yes. Health insurance premiums may increase every year due to inflation, your increasing age, change in coverage or diagnosis of a lifestyle disease, like obesity, diabetes, etc. -
Q2. Do health insurance premiums increase every year with age?
Ans: Yes, health insurance premiums generally increase every year or a block of every few years as you age. This happens because the risk of health issues tends to rise as people grow older, leading to higher costs for insurance providers. -
Q3. Why is my health insurance more expensive this year?
Ans: Your health insurance policy may have become more expensive because of your increasing age or diagnosis of a chronic disease like diabetes, hypertension, etc. It may also increase if you increase your sum insured or expand your policy coverage. -
Q4. Does health insurance premium increase after claim?
Ans: Health insurance premiums may not increase after you make a claim. However, most insurers offer no claim bonus (NCB) to policyholders who do not file a claim in the previous policy year, thereby reducing the renewal premium. -
Q5. How can you lower your annual health insurance premium?
Ans: You can lower your health insurance premium by buying a plan as early as possible, preferably in your 20s or early 30s. Maintaining a healthy lifestyle can also make a difference, as insurance companies often offer wellness discounts on achieving target fitness goals. Additionally, participating in wellness programs or utilising preventive healthcare services offered by your insurer can sometimes lead to discounts on your premium.
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Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
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*Product information is authentic and solely based on the information received from the Insurer. Policybazaar is acting only as a facilitator and claims settlement shall be at the sole discretion of the Insurer. Policybazaar does not provide any medical or surgical advice or diagnosis and is not responsible for your interactions / treatment by a medical practitioner/hospital. Please consult a registered medical practitioner for any medical or surgical advice. The Information that you obtain or receive from Policybazaar, and its employees, or otherwise on the Website is for informational purposes only. As per the Insurance guidelines, you are allowed to cancel the policy with-in 30 days from the date of Issuance of policy.This option is available incase of policies with a term of one year or more.
*All the health insurance plans cover hospitalization expenses including COVID-19 treatment cover up to the specified limits. You can also buy specific COVID-19 health insurance policies such as Corona Kavach Policy and Corona Rakshak policy.
**All savings and online discounts are provided by insurers as per IRDAI approved insurance plans. #Tax Benefits are subject to changes in tax laws. GST Exemptions depend on fulfilment of qualification criteria and submission of relevant documents.
*₹1748/month is the starting price for a 1 crore health insurance for an 18-year-old male, with no pre-existing diseases. Discount on renewal premium is subject to the number of wellness points earned in the health insurance policy. For more details about the plans, please read the sale brochure carefully to get upto 100% discount on renewal premium.
*₹400/month is the starting price for ₹ 5 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹541/month is the starting price for ₹ 10 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹762/month is the starting price for ₹ 1 Crore Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹243/month(₹ 8/day) is the starting price for a 5 lakh health insurance for a 20-year-old male, non-smoker, living in Bengaluru with no pre-existing diseases
*₹2020/month is the starting price for ₹ 1 Cr Health insurance for a 50 year old male & 50 years old female, living in Bangalore with no pre-existing diseases rounded off to nearest 10.
*₹390/month (₹13 per day) is starting price for 1 cr. Health insurance for 25 years old male, with pre-existing diseases, residing from tier 1 city rounded off to the nearest 10.
*No medical tests are required unless requested by the insurer’s underwriter. In-case of pre-existing diseases relevant medical proof would be required as per the terms and condition of the policy opted.
*The values taken for effective cost calculation are indicative values and may change as per the selected plan.
*Coverage upto double the amount of Sum Insured is available on certain covers for a minimum plan of Rs. 5 Lakh on the first claim only to an individual of upto 45 years of age with no pre-existing diseases. The benefit is available with or without extra cost depending on the plan chosen.
*Coverage of pre-existing diseases is provided by insurer as per their underwriting policy.
*The scope of coverage may vary from plan to plan.
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