The cost of healthcare worldwide has significantly risen in recent times. As a result, the demand for health insurance policies is growing rapidly, not just among individuals but also among their families.
However, understanding health insurance premiums can be overwhelming, especially if you are unaware of the factors that determine the premium value.
This blog discusses all the factors that influence your Mediclaim policy premium and offers tips on reducing it to fit your budget without compromising on quality healthcare.
What are Health Insurance Premiums?
A health insurance monthly premium is a monthly payment made towards your purchased plan to enjoy uninterrupted coverage benefits throughout the policy tenure.
It is similar to a subscription fee that you pay the insurer to get the necessary financial assistance in case of medical emergencies. When you make timely payments towards your chosen health insurance policy, the insurer covers the extensive medical expenses on your behalf via cashless or reimbursement claims.
Key Factors Affecting Medical Insurance Premium
Age
Age is one of the primary factors that decide your health insurance monthly premium amount. The older you are, the higher your premium cost will be, as you are believed to be more prone to illnesses.
Lifestyle
Your lifestyle habits and choices also impact your health insurance premium. Habits like frequent alcohol consumption, regular smoking or following an unhealthy diet can increase your risk of various medical diseases, which can result in higher premiums.
Medical History
Previous medical history is another key factor in a health insurance policy's premium amount. If your medical history is clear, the premium will be lower. On the other hand, if you already have some pre-existing diseases or have suffered from a specific illness, the premium will be higher.
Job Role
Your nature of work may also be a deciding factor when calculating the health insurance monthly premium amount. For instance, a pilot will have to pay more as a premium than a teacher, as the higher the risk for your job's nature, the higher the premium amount will be.
Policy Type and Tenure
The tenure and type of health insurance policy you choose may also result in higher or lower premiums. If you select an individual health insurance plan with basic coverage, your premium will be lower. However, if you choose health insurance plans for families, the total premium amount will be higher.
Moreover, a longer tenure will result in more affordable premiums, while a shorter tenure period will result in higher premiums.
No Claim Bonus
The No-Claim Bonus can also impact your medical insurance premium. If you have not filed a claim during the policy tenure, you may get a discount at the time of policy renewal, which will assist you in lowering your premium.
Coinsurance Amount/Percentage
While buying a health insurance plan, you can also opt for coinsurance. For this, you will be required to pay a pre-decided fixed percentage of the claim amount before the insurance money kicks in.
For instance, if your health insurance plan's coinsurance rate is 90/10, then you will have to pay 10% of the medical expenses, while your insurer will take care of the remaining 90%.
Sum Insured Amount
Along with the policy type and tenure, the choice of sum insured amount also impacts your medical insurance premium. The sum insured refers to the maximum financial support you will receive from your insurer in the event of a medical emergency.
So, a 5 lakh health insurance premium will be higher as the coverage limit is high. On the other hand, a 3 lakh health insurance premium will be lower, given the reduction in coverage limit.
Add-ons
The type and number of add-ons you combine with your base policy also impact your health insurance monthly premium.
Health insurance plans from Reliance General can be customised with a wide range of add-ons such as maternity cover, hospital daily expenses cover, OPD cover, emergency ambulance cover, critical illness cover, consumables cover, and more.
How to Calculate Health Insurance Premiums
Health insurance companies use all the above factors - age of the policyholder, type and extent of coverage, NCB/discounts, add-ons opted for, etc. - to determine your health insurance premium.
To calculate health insurance premiums as a policyholder, simply use our online, free-of-cost
health insurance premium calculator.
With our online calculator, you can compare different plans, adjust your coverage and choose the one that best suits your budget. But how?
Simply input the ‘Cover Type’.
Choose the members to be covered if you opt for a Family Floater Cover Type.
Select the Sum Insured.
Input the necessary personal information.
Click on ‘Next’.
Choose the policy and other coverage details.
The screen will display the applicable premium.
You can tweak the coverage limits and other policy-related details to adjust the premium.
Tips to Reduce Health Insurance Premiums
While factors like age and medical history are out of your control, the other factors can be managed better to reduce health insurance premiums.
Purchase Plans Online
One of the most effective ways to reduce your health insurance premiums is by purchasing a plan online. When you buy a health insurance plan online, the middlemen's involvement and expenses are reduced significantly, making the premium more affordable and aligned with your budget.
Compare Different Plans
Before choosing a health insurance policy, take some time to compare different plans, their inclusions and premiums online. This will help you find the policy premium that meets your requirements and provides the necessary coverage.
Moreover, you must also review the claim settlement ratios of different insurers and their customer support convenience to make the right choice based on budget and requirements.
Be Mindful of Necessary Coverage
Avoid paying for unnecessary coverage by carefully reviewing your requirements and needs. Once done, check the different policy inclusions to optimise them as per your requirements. This will ensure that you only pay for the coverage you require without overspending on health insurance premiums.
Maintain Good Health
Another effective way to reduce your health insurance premiums is to maintain good health and refrain from indulging in bad habits like alcohol and tobacco consumption. Adopting healthy habits like active participation in physical activities and eating a balanced diet can significantly reduce your risk profile, resulting in lower premiums.
Buy Health Insurance Early
Buying a health insurance plan at an early age also ensures lower premiums, as you are less prone to many health issues and diseases. With this reduced risk profile, insurers will be willing to offer more affordable premiums if you start early.
Choose Higher Coinsurance Rate
Coinsurance is the portion of the medical expenses that you, as the insured, need to pay before your insurance money is extended. You can choose a higher coinsurance rate to reduce your premium amount.
However, you must be careful, as if you choose a very high coinsurance rate just to reduce the premium, it will leave you with higher out-of-pocket expenses in emergencies.
Explore Top-Up Health Insurance Plans
If you need higher coverage with your health insurance, instead of increasing your sum insured, you can opt for a top-up health insurance plan that is more affordable but with the same benefits.
Be Strategic with Claims
Avoid making claims for minor health issues to benefit from the No Claim Bonus. Under this cover, you get extensive discounts for every claim-free year at the time of health insurance renewals, reducing your overall monthly premium significantly.
Conclusion
Understanding the various factors that impact health insurance premiums can help you plan and reduce your monthly premium effectively.
Moreover, it encourages you to adopt a healthier lifestyle to reduce your Mediclaim policy premium without compromising on healthcare needs and treatments.
We at Reliance General recognise the need for affordable and accessible
health insurance policies that cater to individuals' specific needs.
For added convenience, we provide an efficient and user-friendly website for policy purchases, renewals, and claims to prioritise your health and safety the right way. In addition, our online health insurance premium calculator allows you to compare different plans before deciding which plan to choose based on your requirements.
Frequently Asked Questions
Can I calculate health insurance plans monthly premium online?
Yes, you can easily compare health insurance premiums for different plans using online calculators. Use our online health insurance premium calculator to compare our plans thoroughly and make an informed decision.
What should I do if I want to remove or combine add-ons to my existing policy?
You can make the necessary changes in regard to the add-ons at the time of health insurance policy renewal. When renewing your policy, you have the option of changing your policy coverage and type without any hassle or additional effort. Remember that adding or removing add-ons will also impact your policy renewal premium amount.