Health Insurance Premium Calculator

In today’s world, there has been an exponential rise in the number of diseases and illnesses we are vulnerable to. While the Covid-19 crisis has brought focus on this issue, the underlying health crisis has existed long before the onset of the ongoing pandemic. In this health crisis, health insurance plans have become a necessity.

With the onset of the pandemic, awareness about the importance of health insurance is expected to go up exponentially. Without health insurance plans, the Covid-19 crisis has the potential to push a stable family into a financial crisis overnight.

What is a Health Insurance Premium?

In exchange for the medical cover in the case of an illness, the insured pays the insurer a certain periodic (monthly/yearly) premium payment. Since the risk is transferred from the insured to the insurer, health insurance premiums change from person-to-person. This rate is deduced based on a number of factors. In this article, we will explore the various factors that contribute to the calculation of a health insurance premium.

Reducing the Cost of Healthcare Insurance Premiums

Even though more and more individuals are realising how important it is to have medical insurance, many people are still worried about the premium costs. Here are several strategies to minimise the cost of your insurance, even if mediclaim plans with cheaper premiums may not provide appropriate health coverage:

• Choose higher deductibles: this refers to the portion of the treatment cost that the insured is responsible for. The deductibles vary amongst health plans, with some requiring them while others giving you a choice to forego them. The cost of insurance will be less expensive if you choose a greater deductible.
• Choose a Multi-year Mediclaim Policy: The cost of yearly insurance is greater than that of multi-year policies purchased for 2 or 3 years. Most insurers provide discounts for purchasing mediclaim plans for more than a year, and the price is paid all at once.
• Comparing Insurance Quotes: From one insurance provider to another, the cost of medical insurance varies. And various mediclaim insurance has varying premiums. Comparing several insurance quotes will help you choose and buy suitable medical coverage to fit your healthcare needs.

What is a Health Insurance Premium Calculator?

A health insurance premium calculator is an online service that, that helps individuals gauge what their premium payments may be based on a number of pre-defined criteria. Customers can enter their coverage requirements, and the calculator will inform them about their premiums.

How does a Health Insurance Premium Calculator works?

Customers are required to enter the following details, and the calculator provides a tentative premium rate based on these criteria:
           

• Age
• Pre-Existing Medical condition or family history
• Status on consumption of  listed substances like alcohol, cigarettes etc
• Profession
• Location
• Premiums go up if you opt for additional riders

You just need to enter your personal information and the information about the family you want to acquire the insurance to use the calculator for mediclaim policy premiums. This premium calculator analyses a selection of healthcare insurance plans that are the best fit for you based on the data you give. Pick the greatest plan within your means, taking into account both the coverage and the cost.

Factors that Contribute to Health Insurance Premium Rate

1. Age

When it comes to health insurance premiums, a general rule of thumb followed is higher the age, higher the premium. Undeniably, there are other factors that could overrule age. For example, an individual who is 30 but has diabetes from childhood, or someone who smokes. They are likely to pay a higher premium than an individual who is 40 years old, but does not have any pre-existing health conditions or habits.

2. Medical condition

It need not be said, that while health insurance plans are aimed at providing aid to individuals in the event that they contract a disease, insurance companies are wary of this happening as their business model functions as a game of numbers, and if every customer suddenly avails of their health insurance, the business model is no longer sustainable.

3. Substances

Consumption of certain substances such as tobacco and alcohol have proven to substantially increase the risk of contracting multiple diseases, as well as exposing the individuals to other potentially lethal and expensive illnesses.

4. Profession

Most professions, be it physical labour, office jobs or the arts industry, come with a potential risk of injury or illness. Individuals working in storerooms could be injured by heavy equipment, those working at desks could be prone to a number of limb and back related problems and even artists are at risk of ingesting harmful substances from their paints.

5. Location

Cost for treatment differ from one city to another, hence your premiums are likely to be higher if you reside in a metro city like Delhi or Mumbai.

6. Riders

When buying health insurance, there is a virtually limitless number of add ons you could get with your insurance to increase your protection against illnesses. For instance, one could add cover against critical illness or dental plans to their health insurance plans.

Benefits of Using a Health Insurance Premium Calculator

Health insurance premium calculators provide customers with a number of benefits, such as:

• They allow customers to experiment with different coverages to gauge the various premium rates.
• Individuals can have a better understanding of their premium rates before actually making a purchase, allowing for a more informed decision.
• Some health insurance premium calculators allow for comparisons between premium rates of various insurers.
• Multiple searches allow customers to fine-tune a health insurance plan that is perfect for their needs, after they have looked at various offerings.

Conclusion:

A variety of other factors, such as your BMI, the coverage of the health plan, gender, and the financial status of the health insurance company, all contribute to the calculation of insurance premiums. A better understanding of the factors that go into the calculation of health insurance premiums may help an individual fine tune their policy to their needs to ensure they are not paying for services they are unlikely to require, regardless of whether it is an individual health insurance plan, or a family health insurance plan.