In today’s world, purchasing health insurance has become a necessity rather than an option. With the rise in medical costs, getting a health insurance plan is an effective way to protect ourselves from unpredictable medical issues. However, it is important that we select an optimal health insurance plan for ourselves to ensure we will get the coverage we need during emergencies.
Once you have selected a suitable health insurance policy, you will have to pay a premium amount to the insurance company to maintain the policy active. While you can use a health insurance premium calculator to understand the breakdown of your premium amount, it is important to understand how your premium amount is calculated.
How are Health Insurance Premiums Calculated?
Insurance companies generally base the premium amount for a health insurance policy on a few factors. Listed below are some of the factors that insurance companies use for calculating health insurance premiums:
- Medical history: Your medical history will have a direct impact on the premium amount you will have to pay for the policy. Your medical history would include details like your current health condition, family health background, etc.
- Age at the time of purchase: If you’re purchasing the insurance plan at a young age, the premium amount for the health insurance plan would be a bit low compared to the premium amount you’d be provided at an older age. When you’re young, you have only a few health conditions. However, these conditions rise as you grow old.
- Policy tenure: The insurance policy tenure you select will have a direct impact on the premium amount. The premium amount for a 1-year plan would be lower compared to a 3-year plan. However, insurance companies usually offer discounts and certain benefits for long-term health policies.
- Lifestyle habits: If you drink regularly or smoke, you may get a higher premium amount compared to the individuals who do not smoke or drink.
Understanding how your premium amount is calculated can help you select a suitable policy for yourself. You can also rely on a health insurance premium calculator to make an informed purchase. Using a health insurance calculator can be quite beneficial for your insurance purchase.
Five Benefits Of A Health Insurance Calculator:
- Know the exact premium amount: A health insurance calculator will help you understand the cost of your insurance plan. You can use the calculator to calculate the premium. Once you have a clear idea about the premium amount, you can prepare for the purchase. Once you have learned about the amount, you can also adjust your insurance coverage as per your requirements. It can be an effective tool to learn about the plan’s cost and prepare yourself for the purchase.
- Smooth purchase: With online insurance plans, you can carry out the entire purchase from the comfort of your home. As the health insurance plan helps you understand the insurance premium in a matter of minutes, you will not have to spend time relying on manual techniques and calculations of your own. The health insurance calculator will help you understand the premium amount for your preferred plan. Once you have an estimate on the premium amount you will need for your insurance policy, you can prepare your finances easily.
- Select only the necessary add-ons: Add-ons help you improve your insurance policy’s coverage. However, inclusion of different add-ons to your insurance policy can lead to a hike in your premium amount. With a premium calculator for health insurance, we get an exact estimate on how different add-ons can impact our premium amount. You can tweak the information provided to the calculator and select a suitable set of add-ons for our insurance policy. With this step, you can get the add-ons you need at a premium amount suitable for you.
- Helps you compare health insurance policies: The r can be an optimal way to sift through the different insurance plans available for you. You can use the calculator to compare the coverage and the premium amount offered by the insurance policies. You will be able to make an informed decision once you have looked through the different insurance plans available for you.
Therefore, using the insurance calculator can help you purchase the most suitable health insurance plan for yourself. However, it is important to learn how to use the health insurance calculator beforehand.
How to Use a Calculator for Health Insurance Premiums?
Insurance companies have started offering the health insurance premium calculator in India on their official website. They have made the steps for using a health insurance premium easy for you. To use the calculator, you must follow the steps listed below:
- Select individuals you wish to cover: You can either opt for the individual or the family health insurance plan. You must select the number of individuals based on the type of plan you are purchasing.
- Enter the basic details: You must enter the basic details like your mobile number, date of birth, etc. for yourself and the individuals you wish to include in the plan.
- Select the plan: You will get a list of the different health insurance plans available for you. You can choose the insurance coverage as per your suitability, sum insured and coverage tenure. You must also look through the different add-ons you wish to include in the health insurance plan.
- Answer a few questions: You will need to answer a few questions regarding your lifestyle habits. It is important that you answer all the questions truthfully. If you provide any wrong information about your health or lifestyle, your insurer can reject your claim.
- Get quote: Once you have provided all the necessary information, the calculator will provide you with an estimate on the premium amount.
Conclusion
It is important to learn about how your health insurance premium is calculated before you go ahead with the purchase. Once you have identified the coverage you need, you can use a health insurance premium calculator to make an informed decision. Using the health insurance calculator is quite easy. You will only have to follow a few simple steps to get the premium quotes for your insurance policy.
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