- Date : 17/04/2018
- Read: 3 mins
Various factors can affect your health premium. Here are the top five.
We live as if there is no end to our lives. It is a dream-like sequence that will never see the light of the day. Our health is not absolute or impenetrable, we have to take various precautions to ensure we remain hale and hearty.
We exercise, pray, eat organic, consult astrologers and do all kinds of things to prolong our lives. But while most of us pay attention to our health, very few think of health insurance. When our health fails us, or is affected in any way, this insurance comes into play and helps us cope with the high costs of medication and treatments. However, the level of cover you get to protect your health depends on your premium. And this cost can differ from one insurer to the next. Let’s understand how insurance companies calculate premium and the factors that can affect the premium rate.
A primary factor that insurance companies look at when evaluating your premium is your age. The younger a person is, the less likely he/she is, to fall ill or contract a serious illness. This means the liability attached to younger people is not as high as compared to older individuals. Therefore, insurance companies charge younger people a lower premium.
Current Health Status
Apart from age, a person’s current health status can also determine the premium. For example, those who suffer from obesity or even smoke can be expected to shell out a higher premium for a health policy as they are more susceptible to severe medical conditions.
If you are diagnosed with a disease or illness before buying a health, most insurers will only cover them after a specified waiting period. Additionally, any complications that may arise from a pre-existing disease might not be covered. For example, a claim may not be approved for treating eye problems that might have a link to a pre-existing illness (diabetes). This might result in having to pay a slightly higher premium.
Insurance companies tends to charge higher premiums for people living in big cities and metros as compared to those living in rural areas. This could be because urban areas tend to generate unhealthy lifestyles, and city dwellers are more susceptible to diseases than those from rural areas. Also, the healthcare expenses in metros are considerably high as compared to rural areas.
Consuming tobacco in various forms, whether smoking or chewing, will also affect your health insurance premium. It lowers the chances of availing comprehensive coverage at a lower rate of premium, because tobacco consumption can cause serious diseases, including critical illnesses such as cancer.
These are the five major factors that can affect your health insurance premium. While you may have little control over specific factors, such as location and pre-existing conditions, you can still reduce your premium amount by staying healthy. Follow good lifestyle habits and pay attention to your fitness, and you will not only develop a healthy mind and body but will also benefit from lower premiums.