How Are Health Insurance Premiums Determined

In the past couple of years, medical costs have been on the rise & because of that, many people have begun purchasing health insurance policies. People have started going beyond their basic policies and have begun purchasing policies to ensure you are financially secure in the case of emergencies. Health insurance won’t just cover but also helps you cover up all the costs. Whenever you approve these applications, the companies also do a proper assessment based on a health profile. On that note, here’s a look at how health insurance premiums are determined.

Pre-Existing Health Conditions

People who are suffering from debilitating health conditions are highly likely to file claims. Even though several health insurance plans offer you coverage for pre-existing health conditions after a few years of getting the policy, the certainty of such claims is always higher. Because of that reason, many insurers believe it’s a costly affair.

Because of that, many applications that have diseases like diabetes, thyroid, or blood pressure face a higher chance of rejection than others. This is why it is best to get yourself insured at a young age.

Types Of Insurance Policies

Always remember that the premium of your insurance depends on the plan you intend on buying. If you have bought an illness policy, then there’s a chance that your premium will definitely be on the higher side. If you intend on buying an individual plan, the premium will definitely be a lot different from a family health insurance or floater plan.


If you have habits like smoking or drinking regularly, you need health insurance coverage for sure. Having the best health insurance plan in India will help you cover higher premiums and take care of medical coverages as well. The effects of tobacco and alcohol consumption last much longer. Because of this, many people give up alcohol as it increases their chances of a health claim. Insurers also tend to charge a premium that is much higher in order to deny coverages as they can develop higher illnesses like kidney failure, cancer, etc.

Gender & Age

Your age and premium cost both increases at the same time. This is because age also causes higher health complications. Because of this, several applications also receive a much higher premium as the probability of filing claims is much higher. This is why health insurance for senior citizens is imperative in a time and age like this. Even women at times have lesser premiums on them. Also, people who are above the age of 40 have higher costs of premium on them have higher chances of filing claims because of lifestyle diseases or any critical illnesses.

The cost of a health insurance or term insurance premium usually comes at a fixed cost & you’ll have to make regular payments in order to avail all the benefits of the policy. Leaving the coverage type aside, the assured amount along with other features, you’ll also have to consider your lifestyle. We are sure you have understood that if you purchase a plan when you are young, you will be able to secure your future at the right time.

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