What are the factors that affect the Health Insurance Premium?
Health insurance has begun to gain a lot of importance in today's time. The awareness of buying a health insurance has increased between individuals due to the change in lifestyle and food habits that we follow, many individuals are prone to various diseases. Buying a health insurance or mediclaim can protect you against the financial losses incurred due to a hospitalization.
Let us look at factors that affect the health insurance premium:
- Age- age is one of the most important Factor that influences the premium amount. When you buy a health insurance, the premium for younger age is lower as compared someone buying at a higher age. The reason being, individuals at a younger age have fewer identified & non-identified diseases than older individuals. So, it is advisable to buy a health insurance at an early stage. However, we would recommend every individual to buy a health insurance to overcome the huge cost of hospitalization which may incur in the event they are diagnosed with any illness/ diseases/ injury.
- Medical history- certain individuals whose families have a certain medical history, the premium may differ. Applicants with a history of cancer, diabetes, etc. May have to shell out additional premium as compared to other applicants who have declared nil medical conditions. A positive medical history leads to increase in "risk" and your premium rate.
- Smoking habit- there are instances where the insurance company may charge a higher premium or decline your proposal if you have a habit of smoking or chewing tobacco. The main reason being falling prone to life-threatening diseases like - cancer, heart ailments, etc.
- City of residents- if you stay in a city where thecost of living is high and life is hectic, your health insurance premiums would shoot up.
- Claim free years- if you managed to remain fit and haven't made any claims for a year, your renewal rates would be lower. This is again a way of rewarding you for staying healthy.
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