Do you need clarification about why your health insurance plan becomes more expensive over time or why the premium varies between insurers?
There may not be a one-liner answer to your question. But, among various factors, your age and current health status have much to do with deciding your insurance cost.
Let’s explore how age and health status impact the insurance premium and empower you to take control of your health insurance.
Decoding the Effect of Age and Health on Your Life Insurance Premium
Your age and health status are the primary determinants of how much you have to shell out as a premium against your health insurance policy—starting with how age affects health insurance premiums.
Age
The policyholder’s age is directly related to the premium they have to pay. Generally, the premium payout is higher for older people and lower for younger people. For example, a person aged 52 must pay a higher premium than a 35-year-old.
Here’s how it works –
- Life expectancy: Since younger individuals generally have a higher life expectancy, the risk for the insurance providers is lower. The same goes for older individuals; the risks are higher. Therefore, a younger individual will have to spend less on insurance premiums than an older individual.
- Health risks: Similarly, younger individuals are considered to be less vulnerable to chronic health conditions. As a result, they pay lower insurance premiums than their senior counterparts.
- Policy duration: When you invest in health insurance early in your life, you have a longer period of coverage and premium payment. Now, considering this factor, the policy premium usually remains low. In contrast, the older policy buyers have a shorter premium paying term, and to compensate for that, the premium rises.
- Increased possibility of hospitalisation: Health insurance companies typically consider older individuals more likely to visit hospitals than younger ones. Therefore, factoring in this higher policy utilisation, they charge a higher premium.
Health Status
Likewise, health status impacts insurance premiums. Here’s how:
- Pre-existing health conditions: Generally, insurers use the policyholder’s medical history to determine the premium amount. This is mainly done to check if the policy buyer has any pre-existing health conditions, such as heart disease, nervous complications, diabetes, etc. Since these conditions are likely to incur medical expenses frequently, the insurance company charges a higher premium amount.
- Current lifestyle: Your current lifestyle also impacts the insurance premium. Suppose you have an unhealthy lifestyle or/and any addiction. You are more likely to pay more for your health insurance premium. So, if you savour a regular drink or enjoy lighting a smoke, they can increase your health insurance-related expenses.
- Family medical history: If your family has a history of serious medical conditions like diabetes, heart disease, etc., then you will be considered a risky applicant. The insurance company considers such cases as genetic predisposition, which means you will also suffer from these problems in your life. So, even if you are free when applying for the policy, you will pay a higher premium to cover the possibility of such health issues.
- Mental health: Mental health conditions like anxiety, depression, etc. can also affect the insurance premium. Especially if you have been hospitalised or on medication due to these conditions, then insurers assess how well-managed these conditions are when calculating premiums.
While these factors may hike your premium, the health insurance calculator clarifies why.
How to Calculate Health Insurance Premium Using a Calculator?
A health insurance calculator is an online tool that shows the numerals associated with your health insurance plan. People commonly use it to check their premium commitment to their chosen plan. It enables you to figure out the health insurance costs by age, health, and other possible factors.
The calculator is very easy to use. Here is a small guide on how to proceed –
Step 1: Head over to the official website of your preferred health insurance provider
Step 2: Find the online insurance premium calculator
Step 3: Once you have access to the calculator, enter personal information such as your age, health status, number of people to be insured, mobile number, pin code, etc., and it will show the results almost instantly
Step 4: Now, you can change the details and find an option that perfectly suits your needs
Moving on, the following are the reasons why using an individual health insurance calculator is a good idea:
- A health insurance premium calculator lets you compare different insurers before closing a deal.
- You can access real-time estimates of insurance costs with the help of a calculator.
- Using the calculator, you can customise your health insurance plan, including its coverage.
- The health insurance premium calculators are user-friendly and readily available.
- It saves time and cuts the hassle of communicating with every insurer for premium enquiry.
- The results on display are accurate, which empowers you to make the right decision.
However, besides using a health insurance premium calculator by age, you must consider other factors that may affect the premiums.
Whether a first-time health insurance buyer or an existing policyholder, you should always check your premium liability beforehand. It allows you to plan your finances better. Nowadays, thanks to the individual health insurance calculator, you can check your premium instantly without any guesswork. However, before committing, you should also carefully read the policy-related terms and conditions.
