pays for your hospital bills for diagnostics, surgery etc.
With the growing cost of health care, medical insurance has become a necessity. The calculation of Health Insurance Premium has direct connection with Risk coverage. Thus, different people get different premium based on the risk associated with their health and life. Although there are various health insurance tips that help you lower your insurance premium, the following are the major factors that have an effect on it:
1.Age: Age is a major factor in calculating health insurance premium. Younger a person, lower is the premium. Biologically, young people are more fit and healthy than elder. So, their chances to Claim for health problems are likely to be less. Thus, young people have to pay lower premium.
2.Weight: The healthiness of a person is calculated on the basis of the body mass index. People having a heavy body weight are more prone to health issues like obesity, high blood pressure, cholesterol problems, heart problems etc. People are often encouraged to have an adequate level of BMI. Here comes yet another reason. It lowers your health insurance premium.
3.Gender: Researches have proved that women are more likely to make a claim than men. This is because women are, biologically, more prone to health issues than men. During their life time they pass through various stages which cause temporary health problems. Thus, their premium is higher than men.
4.Marital Status: It is interpreted from many researches that married people are healthier than singles. Thus, medical insurance premium for married is lower than unmarried.
5.Health History: People suffering from any illness or are diagnosed previously, are required to pay higher premiums. This is because the risk associated with their health is higher.
6.Habits: Healthy habits, like regular exercising, help you get a discount on premium. For all those who use tobacco, nicotine or alcohol have to pay higher medical insurance premiums. When a person is using prescription that helps quit smoking, the health insurance premium get reduced gradually since the risk of life gets reduced.
7.Profession: Many jobs involve exposure to high risk activities. For example, people working in cement factories get cement accumulated in their stomach and liver. This causes early death and various health related issues for them. Again, jobs involving heavy machinery work or exposure to hazardous chemicals may cause health risk for workers. Such people pay high premiums because their chances for Mediclaim are high.
8.Location: Certain locations in India have extreme climatic conditions like Northern plains, Cherrapunji etc. Similarly, some places are prone to natural calamities like Gujarat. The risk associated with the life of people is very high in such areas. Thus, they have to pay high health insurance premium.
9.Type of Service: Individual health plans have higher premium than family floater. Similarly, the amount of health insurance premium also depends on the service provider. For Insured with claim free year, the amount of premium is lower than the actual.
10.Coverage: The amount of health insurance Coverage is one of the basic factors in calculating the premium. You may include various features which will work as an add-on to your policy. These features tend to increase the cost of insurance and thus, the amount of premium also increases.
11.Term: Term of the Policy plays an important role in identifying the premium amount. Medical insurance with short term has high premium. Long term health insurance coverage portrays a longer duration of relationship with the service provider.