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5 Key Factors That Affect Health Insurance Cost

Team AckoJan 17, 2024

The cost of healthcare facilities is increasing by the day throughout the globe. Buying a health insurance policy is one of the most practical options to cope with the increasing costs and avail the best medical treatment. Sometimes, this cost may also seem too high.

One needs to be aware of what is causing your health insurance policy to be expensive. In this article, we will shed some light on the important factors that determine the amount of health insurance premium charged to a policyholder. Let’s get started!




Key Factors That Affect Health Insurance Cost

#1 Age

It is said that we are at the peak of our health in our 20’s and 30’s. This is the time when you can work hard and make your life easier for the future. The main reason this phase is considered the best in one’s life is that he/she faces the least health issues. It is also the time when one can recover from a disease faster. A young person pays less for buying a health insurance policy as compared to someone older because the chances of raising a claim are the least within this period. Women in this age group might have to pay a tad bit more as these are also the years when she will likely plan for a child.

#2 Smoking status

The smoking status of a person is taken into consideration while buying a health or for that matter a life insurance policy. Smoking is highly injurious to health. If the policyholder smokes, the chances of making a claim for a health issues increase. Thus, a smoker would pay more medical insurance premium as compared to a non-smoker. Smoking affects both men and women equally. Chances of lung diseases, infertility, etc. can increase significantly due to smoking.

#3 Pre-existing diseases

A policyholder may have to undergo a medical examination before getting insured by a health insurance company. You also need to declare a pre-existing medical condition if any. Your insurer will then assess the risk associated with insuring you. You will be charged an amount of medical insurance premium based on this risk. Some insurers may reject your application while some may enforce a waiting period on a specific disease like diabetes. Some insurers offer coverage without any waiting period but may charge a slightly higher premium amount.

#4 Amount of Sum Insured

You can buy a health insurance plan based on the sum insured. Sum insured is the maximum amount you can claim from your insurance company in case of a medical emergency. It is important to note that the higher the sum insured, higher will be the premium amount you need to pay. Buying a policy with a higher sum insured will be fruitful in the long run due to higher financial backup. It would make sense to buy group insurance policies like family floater plans with a higher sum insured. The sum insured of an individual health insurance plan can be purchased judicially.

#5 Profession

The nature of your occupation can play a subtle role in the calculation of your insurance premium. Note that one cannot be denied health insurance coverage based on the nature of his/her profession but it can be a factor that could affect coverage, exclusions or even the sum insured of your policy.

Mostly, people who work in a risky environment may have to pay more premium as compared to other professions. Firefighters, stunt-men/women, people who work in armed forces, etc. might have to pay more.

How to calculate Premium with Health Insurance Premium Calculator?

Nowadays, it is easy to determine the approximate amount of your premium with the help of a health insurance premium calculator. The mediclaim premium calculator is available online and can be used anytime, anywhere.

To know your premium simply visit your preferred insurer’s website and look for the health insurance premium calculator. You can then fill basic information and know the approximate amount you need to pay as premium. You can also tweak some factors while using the mediclaim premium calculator to adjust the amount.

Also, read: Health Insurance for Women

Disclaimer: *Except for exclusions like maternity benefits, undisclosed diseases, etc. Please check policy wordings for more details.
**The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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