Major Factors That Affect Health Insurance Premium in India

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Buying a health insurance policy has become near mandatory nowadays, regardless of your factors like profession and location. Owing to rising levels of stress, lifestyle changes, environmental factors younger people are increasingly falling prey to ailments that were previously associated with old age! You will see the number of people in their 30s developing heart problems or serious digestive disorders has gone up. It is imperative that you opt for a suitable health insurance policy too. However, not all such policies are the same or offer the same benefits. The premium for such policies also varies widely.

Factors Affecting Health Insurance Policy Premium

You should be aware of the factors that play major roles behind determining the premium amount of a health insurance policy. This will help you compare such policies better and pick the most suitable one.

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  • Pre-existing disorders or medical conditions- Most health insurance companies will check if you have any pre-existing ailment- hereditary or otherwise, before declaring you eligible for their policies. Some such companies may cover such ailments while the others may not. This can have an impact on the final premium amount as well.
  • Genetic or hereditary ailments– You will see the medical insurance firms, like, asking about any disease running in your family even if you do not have that disorder at present. If your family has a history of having specific types of heart ailments, for example, the insurance firm may enhance your premium because genetically, you carry the risk of developing the same disorder later.
  • BMI– BMI or Body Mass Index is a major factor affecting the premium of any health insurance plan, as you will see. Those with high BMI are susceptible to developing serious disorders compared to those with lower BMI. Elevated BMI paves the way for ailments like diabetes, joint problems, and cardiac disorders. You will find many health insurance agencies offering BMI calculator in their websites using which you can calculate your premium amount online.
  • Age– Your age has a direct and proportional impact on health insurance premium. People opting for health insurance coverage at lower age pay less premium for the same policy and coverage amount compared to those who are older. You will find the premium amount for the policy you have chosen going up with age.
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  • Profession– The job you are in may also affect the health insurance premium. The companies offering these policies will analyze workspace related factors and try to assess if those factors can impact your health adversely. Those working in setups where harsh chemicals are used or face the risk of injuries may have to pay a higher premium for the same policy than those in desk jobs.
  • Lifestyle/habits– Sometimes, your lifestyle or habits may inflate your health insurance premium amount. You may find you have to pay a higher premium for the same policy with the same coverage, compared to someone of the same age. This can be owing to certain lifestyle factors the insurance companies deem injurious to health. Those who smoke regularly or intake other tobacco products may have to cough up the higher premium for the same policy and coverage than those who do not have such habits. The reason is not hard to understand! Regular intake of tobacco products can affect your lungs and cardiac health adversely.
  • Other factors- Some other factors can also have an impact on your premium for health insurance. These include your marital status, location and lack of any previous insurance, etc. These are not necessarily negative from your perspective. However, the health insurance companies calculate many related factors and have certain assumptions based on collected data that make them deem these as relevant for premium calculation.