9 Key Factors That Affect Health Insurance Cost
It ends here if you need clarification about the factors affecting your health insurance costs. In the last few years, especially after the COVID disaster, many want to take health insurance policies. And India has the world’s highest population; many insurance companies offer excellent health policies. But each one of them indeed charges different costs for their health insurance coverage. It even differs from one person to another who is willing to safeguard their future during emergencies.
So, to clear your confusion like many others, continue reading to know the vital factors that affect health insurance costs to face medical emergencies without worries and peace of mind.
Nine critical factors that affect health insurance cost
First, it is palpable to want to take a health insurance policy as it may not leave you unbearable and unable to handle medical emergencies. You must have seen many people in hospitals running nook and corner to arrange money for saving their loved ones. But with a health insurance policy, you can show your policy number in the network of hospitals to get immediate treatment and cashless hospitalisation. But you may be concerned about the factors affecting health insurance costs. The following factors will help you to take the policy within your need and budget,
- BMI
BMI, or body mass index, has become the buzzword in health awareness in recent years as it indicates fitness. The significant reason is BMI is the primary cause of many diseases, from heart attacks, type 2 diabetes, breathing problems, etc. Hence insurance companies consider BMI the critical factor in determining the premium as the risks involved in insuring people with high body mass index are vulnerable to many ailments.
- Medical history
Insurance companies take people’s medical history seriously to decide the premium as it could increase their claim redressals. Hence those with minor or no past illnesses will have a low premium, and those with more conditions will have high premium costs.
- Age
For most insurance companies, the thumb rule is insured age as it decides many factors. The less the age the less is the premium and the more is the age, the more is the premium.
- Smokers or non-smoker
If you are a non-smoker, you can be assured of paying only low premiums; if you are a smoker, pay high premiums. It is because regular smokers are prone to many ailments, as per scientific studies. Such diseases include asthma, hypertension, heart attacks, cancer, stroke, COPD or chronic obstructive pulmonary disease and other respiratory complications.
- Plan type
If you take an insurance policy, it will be less than an individual policy as there are more chances for individuals to fall ill. Also, family floaters, including older parents, may cost more as the premium calculates the high risk of illness because of old age. And any add-ons will add to the premium amount as it may include extra claims for ambulances, ICU facilities, etc.
- Insured sum
The Sum insured is one of the critical factors as it decides the premium as iinsurance company have to pay the high claims. Hence depending on your requirement and budget, you can determine the insured sum not to pay less or more.
- Policy tenure
The tenure or the duration of the health insurance policy will decide how much you pay for it. The longer the policy time, the lesser the premium amount, and the less the duration, the more the premium costs.
- Demographics
The demographics, or, in simple terms, the location or zip codes is another factor in deciding the health premium costs. It is because different geographic locations have several environmental factors like climate, pollution, and others.
- Add-ons
Add-ons additional covers for maternity, personal accidents, critical illness that are not covered by the health insurance policy will increase the premium costs.
You may contact the consultant of the best insurance company to know more factors apart from the above to safeguard your family’s welfare for now and in the future.
