Top 10 Factors Affecting Health Insurance Premium

1. Type of insurance plan: The type of health insurance plan you select will affect your health insurance premium. A family floater plan, for example, is typically cheaper than an individual coverage because the probabilities of one person becoming ill are higher. However, the premium for a family floater plan is determined by the age of the oldest insured person.  

1. Insured individual’s Age: One of the major factors affecting the health insurance premium is the age of the insured. This is because ageing increases the likelihood of hospitalisation, medical expenses, and death. Furthermore, some insurance providers have an age limit of 65-80 years for those purchasing a new health insurance policy. This is because the older you get, the more difficult it becomes to assess medical expenses and risk factors.   

1. Sum Insured: Your health insurance premium will be impacted by the sum insured (SI) you choose. The sum insured is the maximum amount that can be claimed for medical expenses. Thus, a lower SI can lead to a reduced premium, while a higher SI can result in a higher premium. However, you will be responsible for covering any additional expenses if your total medical bills are more than your SI allotment. Therefore, you must exercise caution while selecting your SI.  

1. Pre-existing medical conditions: If an individual has pre-existing medical disorders that have a long-term influence on their health like high blood pressure or diabetes, they are more likely to incur additional hospital charges and higher medical bills. The premium amount will be determined by the severity of your pre-existing condition as evaluated by a doctor.  

1. Add-on covers: To avail extra benefits on your existing health insurance policy, you can buy add-on covers. You must pay an additional premium if you choose to personalise your health insurance with add-on covers such as a Personal Accident cover, Maternity cover, etc. However, note that the total premium for all add-ons purchased under a single health insurance policy must not be more than 30% of the original premium sum.  

1. Location of stay: In terms of hazards, medical expenses, and other environmental elements like pollution and climate, every geographical area will vary. Indian cities are split into zones according to the cost of healthcare there. The more a city's medical expenses, the higher its zone, and the higher your premium.  

1. Choice of profession: The amount of risk you face at work will also be considered when calculating your premium. Individuals with safer jobs such as office work will be required to pay less compared to those employed in a construction site or factory that are at a higher risk of injuries/accidents.  

1. Family medical history: If your immediate family members such as parents or grandparents have a history of illnesses such as cancer, heart diseases, Alzheimer's, and so on, you run a higher chance of developing these conditions. Thus, your premium amount will rise.  

1. Lifestyle and habits: Unhealthy habits such as smoking and chewing tobacco will also have an effect on your premium. Because these activities increase the risk of lung infections, cancer, and other serious diseases, smokers have to pay a higher premium compared to non-smokers.   

1. Body Mass Index (BMI): Individuals who are overweight (based on BMI) are more likely to develop diseases like diabetes or hypertension, according to insurance companies. Such individuals also pay a higher premium since they are more likely to file health insurance claims in the future.  

Top Banks that Provide Health Insurance:

Here is a list of the top banks offering health insurance plans in India: 

1. Axis Bank 
2. HDFC Bank 
3. Union Bank of India 
4. Canara Bank 
5. Federal Bank 

1. UCO Bank 
2. Bandhan Bank 
3. Karnataka Bank 
4. Bank of Baroda 

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.