Many people generally have a little idea about how insurance companies finalise the premiums for health insurance schemes. Multiple factors play deciding role in insurance premiums. In additions, individual insurance companies have their own guidelines in determining premiums. Following are the general guidelines insurance companies use:
Policy Validating: Insurance companies offer many types of individual as well as group policies. As a responsible entity, they calculate the broad spectrum risk involved. On the basis of such analysis, different policies are set to have specific criterion on eligibility and instances like denial of medical coverage.
Medical History: Insurance companies consider the medical history and various health-influencing factors such as smoking/drinking habits and age at the time of suggesting health insurance policy.
Investment: Insurance companies invest their wealth in public sectors avoiding private due to the risk factor. These investments follow the guidelines made by the government of respective nation. The health insurance premiums are calculated on the basis of such capitalization.
Revised Community Evaluation: These are the external factors such as political stability of a particular geographic location, industrial development and trading that are taken into account before calculating policy premium.
Advertising expenditure: The insurance companies sustain the money spent on marketing as well as the administration from the premium paid by the purchaser.
Along with medical benefits, Health Insurance comes with tax benefit under sector 10 D of Income Tax Act, 1961. In other words, the premium paid to secure the future also entitles the policyholder for tax exemption. Having Health Insurance always benefits the policyholder. However, the thing confuses the potential policy buyers is Health insurance premium.
Calculation of health insurance premium is a tricky thing to do. Many of the buyers chose to go with whatever amount their insurance agent asks them to pay. However, thanks to this digital era, online tools have made it easy and quick to calculate medical insurance premium. The Health Insurance Premium calculators also provide detailed information about the health policy to the buyer.
The Benefits of using a health insurance premium calculator:
1. They simplify the complex calculations of health insurance premium providing a quick result of the health insurance quote to the policy buyer.
2. Knowing a tentative amount of the medical insurance premium makes it easier to plan a financial schedule.
3. There are some online calculators available that suggest different health insurance plans. Buyers can consider such pre-compared policies to ensure if they policy they are willing to buy possesses all the requirements.
4. The health insurance premium calculators come up with different parameters that can be calibrated to reach the optimum sum of the premium payment suitable to the financial status of the purchaser.
With all their benefits, a health insurance premium calculator is like waiters and a chef that customise your favourites and serve it ready on your dish. To use the health insurance calculator of Reliance, click here.