Decoding Insurance

How Your Lifestyle Choices Impact the Health Insurance Premium?

Aditya and three of his friends bought the same retail health insurance policy. However, the insurance premium charged is different for each of them. He noticed this and was confused as to how this was possible On reading up, he discovered that insurance companies follow a simple rule- ‘The greater the risk, the greater the premium’. He understood that the different premiums paid by them are interlinked with the risk associated with each of them. Health insurance companies calculate this risk by examining several factors explained below: 

Health conditions

An unhealthy lifestyle might put your health at risk for several medical conditions and you might face difficulties while applying for Health insurance. If a paramedical test mandated by an insurance company indicates that you have high blood pressure, are overweight, or have a high cholesterol level, the insurer may classify you as a high-risk customer and charge you higher premiums on your health insurance policy.


As they have fewer diagnosed and undiagnosed conditions than older people, most young people have substantially lower premiums. Young policyholders are less likely to suffer from health issues and are less likely to seek any medical help.


According to insurance companies, the insured's profession may influence the insurance premium. A person working in surroundings with hazardous substances, radiation, chemicals or having a profession with a greater risk of injury, such as mining operations, is more liable to pay higher premiums.


Your lifestyle choices have a significant impact on your insurance prices. Insurers reward consumers who live a healthy lifestyle with lower premiums and even give benefits for staying healthy. People who engage in unhealthy activities like smoking or drinking alcohol are more likely to become ill and this is reflected in the cost of the health insurance coverage they purchase. It is thus essential to avoid habits that are likely to raise medical risks and to purchase comprehensive insurance as soon as possible.


A high BMI is one of the top indicators of chronic conditions affecting our essential organs and other problems like joint damage that may demand hospitalization. As a result of the higher risk of serious medical conditions that might lead to long periods of hospitalization, those with a high BMI are liable to pay higher insurance premiums. Even physically fit people should get frequent medical checkups and take precautionary measures to keep their weight in check before it increases rapidly.

Aditya realized that Sanchit had to pay the highest premium among his friends as he is the oldest one and suffers from high blood pressure and chronic liver problems. Gagan is the youngest one but still pays a high premium because he is a heavy smoker and leads a sedentary lifestyle. Jai works as an underground miner in a coal mining company which inflates his insurance premium. 
Aditya pays the lowest premium because he is young, fit and follows a healthy lifestyle. He was now finally convinced and explained this to his family and friends as well. Lifestyle choices not only have an impact on your health, but they may also significantly raise your health insurance premium.

Insurance companies are bound to pay keen attention to your lifestyle and career choices when you apply for health insurance. So, positive lifestyle changes can not only help you live a better life, but they can also help you save money.


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