With medical expenses skyrocketing in the current times, having a health insurance that covers adequately is one of the wisest decisions one can make. While a large population is aware of this important consideration while buying a health insurance, there is still a large section of people who look for the lowest premiums and pick the health insurance. With the coverage amount being one of the factors which determines your premium to be paid on regular basis, there are various other factors that are taken into consideration while determining the premium of your health insurance plan. Such factors are pertaining to the personal information, lifestyle and medical history of the policy holder. Basis these information, which the policy holder is expected to give correctly and avoid any rejection of claims in the future due to non-disclosure of few parameters, the insurance companies attribute a score for each component and determine the risk profile of the customer.
Your lifestyle plays a very important role in determining the premium for your health insurance plan. Individuals with higher BMI pay higher premium than ones with normal BMI. With higher BMI, the risks of heart diseases, diabetes, sleep apnea and joint issues seep in and are frequently seen. Which means the policy holder is of a higher risk and might need the coverage more often. Similarly, consumption of tobacco impacts the premium one pays for the health insurance. Few insurance companies penalise individuals who have quit the intake of tobacco even years earlier, since the effects of the same is likely to occur in the near future and the person is more open to critical illnesses like cancer and respiratory disorders.
It is always advisable to buy your Health insurance policy during your early years. The reason being, one-the tenure increases and thus, the premium amount that you pay monthly or yearly or quarterly also falls down, two- younger individuals are less likely to develop as many health ailments as their older counterparts. Similarly, the gender of an individual also plays a role when considered to determine the risk profile of the customer and thus the premium. Women are more likely, and being considered to be more punctual and disciplined when it comes to regular doctor consultations, following the prescriptions and are seen more enthusiastic and concerned about their lifestyle as they age.
Insurance companies consider the family medical history and pre-existing health concerns of the policy holder while selling the insurance. People with a family history of cancer or diabetes pay higher premiums. Similarly, a person with pre-existing medical condition is likely to develop issues in the future and thus pays higher premium.
Premium Discounts in Health Insurance
While there are plenty of factors that can increase the premium of your health insurance plan, there are certain discounts that you can avail on your health insurance plan.
Family Discount- insurance more than one member of the family in the same individual insurance plan (not on the family floater plan) one can avail attractive discounts of 5% on insuring 2-3 members of the family and 10% on more.
Girl Child Discount- Certain insurance companies offer a discount of 5% on the premium when a girl child is covered under the floater policy.
Single Woman Benefit- Insurance companies provide discount of 5% on premium for single women who are widowed and covering themselves and the children as well as to women covering themselves and are single or divorced.
Cross-Sell Relationship Benefit- Certain insurance companies provide their customers an additional discount on the premium paid for health insurance if the individual holds a motor policy or a householder policy under the same insurer.
Insurance Companies Offering the Best Premium for Health Insurance in India
The IRDA publishes a list of insurance companies in India, annually, keeping in mind the various parameters determining the ranking of the insurance company. Here is a list of top 5 insurance companies in India
- Apollo Munich Health Insurance Company- Apollo Munich Health Insurance is one of the best in the country with the Incurred Claims Ratio of 63.06% in the year 2014-2015,
- Star Health and Allied Insurance Company Limited- The incurred claims ratio of 63.96% along with certain protection plans for individuals suffering from Cancer or HIV+.
- Max Bupa Health Insurance Company Limited- The renowned insurance company has an incurred claims ratio of 55.16% in 2014-2015.
- ICICI Lombard General Health Insurance Company Limited- Offers various facilities starting from emergency services, hospitalisation costs, dental expenditures and rent of the room. It has an incurred claims ratio of 87.38%.
- Bajaj Allianz Genera; Health Insurance Company Limited- With various plans to suit all age groups, Bajaj Allianz is one of the most trusted insurers in the country with an incurred claims ratio of 73.59%.