How Health Insurance Premium is Determined

Age: Higher the age, more the premium. That is because as one gets older the medical expenses tend to increase. A young person would rarely require medical attention but same is not true for elderly people.

Health: A person’s fitness also determines health insurance premium. If a person is healthy then probability of him getting hospitalized due to illness is lower. At the same time, if the person has any genetic disease the premium would be higher or the disease may be excluded from the coverage.

Lifestyle: A person’s way of living also influences the health insurance premium. If a person’s lifestyle is susceptible to health risks like drinking or smoking, his premium may be higher.

Geographical Region: A person living in Tier I cities may have higher premium than a person living in Tier II or Tier III cities. The cost of healthcare in metro cities is more as compared to small cities.

Type of Health Plan: Premium also depends on whether it is individual plan or family floater plan. Family floater plan is expensive since the cover extends to complete family.

Amount of Coverage: The Sum Assured you choose also determines the health insurance premium. Higher the Sum Assured more will be the premium.

Additional Benefits: The health care plans offer many additional benefits like hospital cash, critical illness which will increase the premium nominally.