The health insurance premium is calculated after considering several factors that directly influence the premium prices. Determining the estimated cost of your health insurance is a crucial step when looking for the best private medical insurance plan. It allows you to weigh the insurance price with the offered benefits and tally your budget to understand whether it fits in.
Thus, it is important to calculate your health insurance premium before you buy a policy to make an informed decision. Here is the most practical way to calculate an accurate estimate of the premium price.
How to Use Premium Calculators to Determine Health Insurance Premium?
1. Visit the official website of a reliable insurer
Go to the official website of a trustworthy insurer and find their health insurance calculator. Ensure that the platform is secure and consider key factors to generate an accurate estimate for a variety of plans specific to your needs.
2. Select the Insured Members
Choose the number of people you want to insure. For example, if you want to insure your family, including your spouse and children, select the appropriate number. This ensures that the price estimation is accurate and that you have sufficient coverage for all of them.
3. Enter Your Details
Provide personal details such as your name and age, your family members’ names and ages (if needed), address, gender, email address and/or phone number. This will ensure you receive an instant quote and that important factors such as age are considered in the calculation.
4. Choose Plans and Add-Ons
Select the best plan from the available range of plans that suits your needs. Next, select any optional add-ons that you may need to ensure comprehensive coverage, such as maternity coverage.
5. Review the Estimated Quote
The calculator will generate an instant quote based on your choices and personal information. Review the quote and make any necessary adjustments to understand each factor’s influence on the price.
Factors to Consider When Calculating Health Insurance Premium
● Age
Your age is one of the most influential factors impacting the premium. Younger individuals generally have a lower risk of health hazards and are less likely to use their insurance.
On the other hand, older individuals have higher health risks and may require constant medical care. Thus, the insurance premium is lower for younger individuals than senior citizens.
● Location
The city you live in also plays an important role in determining the insurance price. This is because the healthcare costs in cities greatly vary depending on the facilities available and health risks in the location.
Areas with advanced healthcare systems and specialised care have expensive treatment options. So, people living in metro cities or tier 1 cities have higher insurance premiums than those living in tier 2 or 3 cities.
● Medical History
A history of chronic illness or hereditary conditions, such as cancer, increases health risks and the chance of claiming the insurance policy. Additionally, such individuals also require more medical attention than the rest, including diagnosis, tests, preventive care, etc.
Thus, insurance premiums for those with a history of illnesses are higher to support their medical needs.
● Number of People Insured
Adding more members to a single health insurance policy increases the premium. Family floater plans, though cost-effective, consider the oldest family member’s age for pricing. For senior citizens, individual policies might be a better option to avoid excessive premium costs while ensuring adequate coverage for everyone.
● Choice of Coverage
The extent of coverage impacts the premium amount. Policies offering broader coverage for critical illnesses, high sum insured amounts and additional features like daycare procedures or OPD benefits usually cost more. Consider your family’s specific needs when selecting coverage options, ensuring that the policy aligns with your budget and requirements.
● Lifestyle
Your lifestyle choice, such as smoking, drinking or a sedentary lifestyle, not only affects your health quality but also affects the health insurance prices. These factors are considered before issuing you a policy as they pose a threat to your health and indicate your need for medical coverage. Thus, those with unhealthy lifestyles have higher premium rates than those living a healthier lifestyle.
Choose TATA AIG for Affordable and Comprehensive Coverage
TATA AIG provides health insurance solutions designed to cater to diverse needs. From individual plans to family floaters, their plans cover hospitalisation, pre-existing conditions, annual check-ups and more. Additionally, their easy-to-use health insurance premium calculator helps you estimate policy costs instantly with just a few clicks.
With TATA AIG, you can customise plans with add-ons, such as maternity cover or critical illness cover for enhanced protection. Explore their wide range of plans and secure comprehensive health coverage for your family.
