Health insurance is an integral part of any financial planning process.
But how much should you pay for health insurance then? Unfortunately there isn’t an exact amount for everyone.
The amount you are supposed to pay for your health insurance policy depends on various factors like age, location, coverage amount, medical history, members in the family, and features, etc
A Health Insurance Premium Calculator can help to calculate the amount of Premium that might be levied on
any given time however this premium calculation depends on underwriting and policies offered by the insurer.
What Is a Health Insurance Premium Calculator?
Understanding How It Works
The health insurance calculator is a feature provided by many online insurance companies where you can use certain details like:
- Age
- Gender
- Location
- Number of family members
- Desired sum insured
- Existing medical conditions
- Policy type
and receive an estimate of your premium depending on these factors and the company’s premium plan.
This calculator, however, only provides a premium estimate, your final premium will be decided by your insurers.
What Factors Affect Your Health Insurance Premium?
Age of the Insured
Age plays a significant role when it comes to health insurance because as we get older certain health issues arise increasing chances of hospitalisation making it essential for every adult to take a suitable health insurance plan to cover future health expenditures
This makes acquiring a health insurance plan at an earlier age cost-effective as compared to people purchasing at a later age (subject to insurance company’s premium).
Coverage Amount
The coverage amount (sum insured) you choose can influence your premium rates.
Higher coverage means higher health insurance premium since the insurance company covers more of your health needs.
For example: ₹10 lakhs will cost higher than ₹5 lakhs (this varies from insurer to insurer).
It is essential to choose the required sum insured depending on your health needs as well as the sum insured offered by different insurers.
Number of People Covered
For family health insurance, the number and age of members covered can influence the premium
A family floater policy generally provides a shared sum insured for covered family members,
while individual policies provide separate coverage for each insured person.
Compare both options based on your family’s requirements
Medical History
Your current health may affect the health insurance you are eligible to take since you might have to spend time in the hospital, pay a percentage of health bills, co-payment waiting period to get your claims approved, and other issues
Make sure you disclose your health details when purchasing health insurance online or via insurance agent, since hiding something can cause claim rejections in the long run
Location
Depending on the city you stay in health insurance rates can be different across locations
How Much Health Insurance Should You Buy?
Don’t Choose Coverage Only Based on Premium
The cheapest health insurance plan doesn’t necessarily offer great benefits so make health insurance decisions depending on your:
- Your age
- Family size
- Healthcare costs in your location
- Existing medical conditions
- Current savings
- Expected healthcare needs
- Your annual budget
A young man or a family with children can have different health insurance needs than a family with senior citizen members.
Why Comparing Premiums Is Important
Look Beyond the Price
Some health insurance plans offer benefits that other plans do not.
While most people compare the sum insured; check features like
- Sum insured
- Hospitalisation coverage
- Waiting periods
- Pre-existing disease coverage
- Room-rent limits
- Co-payment
- Exclusions
- Network hospitals
- Claim process
- Renewal conditions
A higher premium amount plan can be great for you and your family and offer better benefits and coverage than a cheaper plan.
Compare two or more health insurance plans and their benefits to see which provides more value
How to Use a Health Insurance Premium Calculator
Follow These Steps
Using a calculator is generally straightforward:
- Enter your age and location.
- Select individual or family coverage.
- Enter the number of people to be insured.
- Select the desired sum insured.
- Provide other required information.
- Review the estimated premium.
- Compare suitable plans and policy features.
Always review the final policy documents before purchasing
How to Keep Your Health Insurance Premium Manageable
Balance Cost and Protection
You don’t have to go for the cheapest plan, compare different health insurance plans and make a choice regarding the amount that fits within your budget. You can:
- Comparing multiple policies.
- Choosing a suitable sum insured.
- Reviewing unnecessary add-ons.
- Maintaining continuous coverage.
- Considering a super top-up where appropriate.
- Reviewing your policy periodically
Decide for yourself keeping in mind the above points and what suits your financial planning and health care requirements better.
Premiums are dependent on age, sum insured, gender, location, and other things
Frequently Asked Questions
Is a health insurance premium calculator accurate?
The health insurance premium is just an approximate value, the final health insurance premium will be calculated depending on the insurer, policies and other available documents and information
Does a higher sum insured always mean a much higher premium?
Higher sum insured means higher coverage which would result in higher monthly premiums.
Higher coverage premium also depends on age, gender, policy and other applicable factors
Should I choose health insurance based only on premium?
No: Coverage, waiting periods, network of hospitals, co-payments, premium conditions for renewal, claims, exclusions, and other applicable rules and conditions must be taken into consideration and compared between two or more insurance policies.
Can my health insurance premium change during renewal?
Your health insurance premium can change at the time of renewal, based on several factors like Age of the insured, insurance company, product changes, legal and government rules and more.
Check any conditions on your policy for details about insurance premium renewal
Conclusion
Health Insurance Premium Calculator can help you decide the amount you need to spend on your health insurance however it should not be the sole deciding factor when buying or renewing your health insurance.
Consider age, sum insured, coverage, family needs, medical history, health conditions, and other relevant factors.
Compare different insurance policies and ensure the benefits are enough to cover your medical care and expenses in the future.
Keep your health insurance premium low by purchasing a plan you can afford and one that covers your main healthcare needs.
It’s not about finding the cheapest health insurance plan, it’s about finding the best value
At BimaStreet, we believe that the right guidance is just as important as the right policy. When you understand what insurance advisors look for before recommending a plan, you’re in a much better position to choose health insurance that protects your family today and in the years ahead
