In India, today health insurance is beginning to gain a lot of importance. In urban India with the lifestyle choices made by individuals, life is becoming highly unpredictable. That’s why health insurance becomes an important aspect of our lives today, health insurance or mediclaim is opted for by most individuals with various insurance companies to pay for hospitalization or medical expenses. The amount of premium that needs to be paid towards this type of insurance is decided upon by calculations made by the health insurance companies.
The factors that affect your premium towards health insurance are:
- Pre-existing medical conditions: The policyholder or applicant will need to provide your own health records to ensure there aren’t any pre-existing medical conditions. But if, you do have any pre -existing conditions, then the company can choose to allow it in their policies or can even decide not to cover it, and if the insurance company cannot cover it under the health insurance then the policyholder will need to bear the costs. Thereby increasing and affecting the premium.
- Family medical history: If the policyholder’s family have certain medical ailments their premiums may be higher than others. No one can do anything with their genes. If the policyholder’s family has a medical history of illnesses such as heart diseases, cancer or any other, that puts you at a risk and it increases the individual’s rate of premium.
- Body Mass Index (BMI): People with high BMI have a significantly higher rate of premium than people with normal BMI. The reason again being this can lead to various ailments such as heart problems, joint problems, diabetes, to name a few. People with higher BMI may even need specialized treatment, for normal procedures like pregnancy. Thereby making even simple process a little tedious and affects the premium rates.
- Injurious substances: Most insurance companies increase their rates of premium for their insurance plans and at times even refuse to insure people who have the habit of smoking, chewing tobacco or snuff. Since they are most prone to getting life threatening diseases like cancer. Thereby affecting the rates of premium.
- Gender: Many policies have a difference in premium rates for men and women, the 3 reasons for this experts say are - Women are more likely to visit doctors, take prescriptions, and be subject to chronic diseases.
- Age: Most young individuals have premiums at much lower rates since they have fewer identified and unidentified diseases than older individuals. Young policyholders are less likely to have health problems and are more likely not to visit a doctor.
- Choice of profession: Policyholders working in environments with hazardous substances, radiation, chemicals, and jobs with high risk of injuries like constructions have to end up paying higher premiums as per insurance companies since they’re prone to risk of cardiovascular diseases.
- Marital status: It’s still unclear if married people live longer and healthier lives, but the insurance premiums generally lower in rates. The men generally reap better benefits with this status change.
- No insurance yet: If you’re not previously insured, the insurance companies generally charge a higher rate of premium. The insurers believe that previously uninsured individuals would make frequent trips to doctors and hospitals to start reaping benefits of the health insurance policy. Therefore they increase the premium rates to cover all expenses.
- Location of stay: There are many insurance companies who base their premiums on the location in which the individual stays. Many companies feel that shared climate, lack of healthy food options, cultural aversion to exercise etc. often come from same areas. And therefore the similarities have lead companies to charge higher health insurance premiums.
GST rate of 18% applicable for all financial services effective July 1, 2017.
Disclaimer: Premiums may vary depending upon factors like age, location and prevailing taxes/GST.