4 Factors That Determine Your Health Insurance Premium

Dr. Deepti Dwivedi

Health insurance premiums are determined based on various factors that play a role in deciding your premium. Your health insurance premium is determined by specific criteria, each of which is unique. By understanding these factors, you can make informed decisions about your health insurance policy and ensure that you pay for the coverage you need. In this blog, we’ll explore each of these factors in detail and help you to understand how they impact your premium.

1. Prior health conditions

People with health problems are more likely to have higher insurance premiums than people without health problems. Health insurance companies are likely to use various methods to determine premiums, including looking at the person’s health history to determine health insurance premiums. People who have had health conditions in the past are more likely to have high premiums as these people are considered to have a higher risk of future health problems. People with health problems are also more likely to seek out medical care. Therefore, they’re typically considered a higher-risk group by insurance companies. In addition, people who have had health problems in the past may be less likely to be able to find jobs that offer affordable health insurance coverage, which can lead to even higher premiums. 

Health insurance companies use various techniques to determine your premium based on your health history. Your health history includes concerns that you have had in the past, are being treated for now, or could become a concern in the future. Health insurance companies use a variety of medical procedures to evaluate your health history and determine how likely you are to experience specific health issues in the future. By considering this history, health insurance providers can determine the risk associated with you and price your policy accordingly. Therefore, it’s crucial to be transparent with your health insurance provider about any concerns you may have to assess your risk accurately. The best way to determine whether you are likely to experience higher premiums is to consult with your health insurance company in advance and decide what factors are considered when setting premium rates.

2. Gender

In India, Health insurance companies are likely to charge women more than men for the same coverage. One of the reasons is that women are more likely to have more chronic diseases and use more health care services overall. Furthermore, the costs associated with pregnancies and child births are more exclusive and have to be considered concerning women. In some cases, insurance companies may also charge women more because of their age. For example, if a woman in her early to mid-20s is generally considered less risky than an older woman, she might be charged less by an insurance company. Therefore, it is suggested that one must refer to different policies before investing. It is advisable to seek the advice of a competent professional who will be able to provide appropriate guidance.

Gender is one of the critical factors that determine health insurance premiums. Men and women differ in terms of their risk for health issues, but insurers use different methods to factor these differences into a premium rate. In addition, depending on certain factors, insurers need to consider the unique health needs of women and men. By keeping these distinctions in mind, you can ensure that your premium is set at a level that accurately reflects your risk as an insured. It is critical to be as open as possible with your provider about any health concerns you may have to get the best possible pricing for your health insurance coverage.

3. Occupation

An individual’s profession is a common determinant of health insurance premiums in India. For example, individuals employed in occupations with high rates of disease, such as doctors and nurses, often pay substantially more for health insurance than self-employed or unemployed. Conversely, those employed in occupations with less disease incidence typically pay less for health insurance premiums. The high rates of disease among professionals may be one reason for the difference in rates between professions. In addition, the difference between premiums paid by the government and private employers for health insurance may also explain part of this differential.

4. Consumption of injurious substances

In India, people who consume tobacco are more likely to pay higher health insurance premiums than those who do not consume tobacco, as tobacco use increases the risk of many types of cancer, including lung cancer and mouth cancer. In addition, smoking can lead to other respiratory problems and shorten one’s lifespan. Therefore, one can argue that consuming tobacco is a health risk, and as such, those who do so are likely to face higher premiums for health insurance. Besides the consumption of tobacco, Obesity is another example. Individuals who smoke or are obese tend to lead unhealthy lifestyles and generally have a higher incidence of chronic diseases such as heart disease, stroke and diabetes. Given these facts, it can be argued that Obesity is also a health risk, and hence those who are obese are likely to face higher premiums for health insurance.

Health insurance is a significant investment that can safeguard you and your loved ones in an unfortunate event. However, the decision of selecting the right policy can be challenging. It’s never too late to consider your health and find the best insurance policies to cover your medical expenses in case of an illness. So to get a better understanding of what could potentially affect your premium, it’s crucial to seek the advice of a professional who can guide you through the different available health insurance options.