Health Insurance Premium Calculator

Health insurance is an important part of your financial plan. It might not yield returns like an investment in mutual funds but it is great for saving money in case of unpredictable and unfortunate events involving hospitalization and accidents. Proper health care is expensive in India. With an insurer by your side, you can rest assured about the expenses and focus on recovery. For that, you need to buy a suitable health insurance plan. This is where a health insurance premium calculator is useful.

Just like an ordinary calculator makes complex calculations easy, the premium calculator simplifies the calculations related to health insurance. This tool will assist you in knowing how much you have to pay for a particular cover so that you can plan your purchase. This article will explain more about the premium calculator and share certain tips to reduce the premium.

The following sections of the article will highlight the benefits, importance, and usage of the premium calculator. They will be followed by a Frequently Asked Questions section. Read ahead for more information about premium calculation in health insurance.

A Health insurance premium calculator is an online tool. Most online health insurance companies feature this on their website. This tool is used for knowing the payable premium associated with a particular health policy. As a health policy’s premium can vary based on a person’s age, chosen add-ons, etc., there isn’t a table that can help you out. Instead, you have a premium calculator. Here, you feed in the information and the calculator lets you know the payable premium and the sum insured.

You do not have to make a payment to use this tool. It is available for free. You simply have to enter basic personal details such as date of birth, contact information, and choose a cover. The required information might vary from one policy to another. The calculator will use the provided information to come up with the payable premium for the plan.

The world of medical insurance has opened because of the online revolution. Tasks that used to take weeks can be performed in a couple of hours. Be it purchasing a policy or settling claims, technology has made health insurance more accessible and convenient. Even the pre-purchase tasks have been simplified. For example, you can calculate health insurance premiums online within minutes. Here are the advantages of this online facility.

Using a health insurance calculator is not at all complicated. You do not need any prior knowledge to use it. Simply, look at the fields and enter the requested information. Here’s a basic flow of how to use it.

Step 1: Visit the web page or the landing page of the health insurance calculator.

Step 2: Enter details such as age, PIN code, etc.

Step 3: Select the number of people you want to insure.

Step 4: Select the right coverage along with add-ons.

Step 5: Share other requested information and click ‘calculate’.

Step 6: View the payable premium for the selected cover.

Here are the top benefits of using the Acko Health Insurance Premium Calculator.

Here’s why a medical insurance calculator is important.

Health insurance price or health insurance premium is the amount you pay to the insurance company to buy the policy. Different policies will have different premiums. The premium will depend upon a variety of factors.

In India, health insurance policies offer tax benefits under Section 80D of the Income Tax Act. Individuals can claim a deduction of up to Rs. 25,000 for their own policy or that of their spouse or dependent children, and an additional deduction of up to Rs. 25,000 for their parents' policy. Senior citizens can claim higher deductions of up to Rs. 50,000. So, health insurance not only provides financial security but can also reduce your tax liability.

A lot of people find filing a health insurance claim troublesome. They feel it is a big task to get the claim settled. This is where online insurers are changing their perception. They are utilizing technology to bring in simplicity, transparency, and speed.

You can file claims via the offline mode, the insurer’s representative, or the online mode using the insurer’s website or the mobile app. The tech-driven process is usually more convenient. Also, you have to decide whether you want a Cashless Claim process or a reimbursement claim process.

In the Cashless Process, you do not have to pay a major part of the hospital bill upfront. The insurer and the hospital settle it between themselves. In the Reimbursement Process, you have to clear the hospital bill, stack the receipts, apply for a claim and then get it reimbursed from the insurer.

Here’s an overview of a claim process.

Step 1: Visit a hospital that is a part of the insurer’s network for Cashless Claims and share your Health Card or state your policy number/details. If you are not opting for Cashless Claims, then visit any hospital of your liking and let the insurer know of it directly or via a Third-party Administrator.

Step 2: You will come across a Third-party Administrator at the hospital who is a link between the insurance company and the insurer. Comply with the TPA with respect to furnishing documents and sharing information.

Step 3: Go through the treatment. In a Cashless Process, you will have to pay for the Deductibles or any other extra costs and the rest will be taken care of by the TPA on behalf of the insurer. In case of a Reimbursement Claim, pay the entire bill and ensure to keep detailed receipts and bills from the hospital and apply for a claim.

Step 4: The Cashless Process shall be completed once you pay the residual bill while the Reimbursement Process shall be completed when you receive the settlement amount from the insurer in your bank account.

Note that for prearranged hospital visits, please discuss the due process with the insurer.

Top-up and Super Top-up are separate health insurance plans. You can skip the basic health insurance part and just opt for these top-up plans as well. As the name suggests, they come to your rescue when the hospital bill is over a predetermined limit. The difference between the two is related to the number of claims that can be made and the total claim amount that can be applied for. Also, different insurers might have different features, benefits, and clauses when it comes to such plans. For details, you need to go through the features of these plans.