1. Finance

Factors Influencing Health Insurance Premiums

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When buying Health Insurance, you notice that different policyholders pay different premium amounts. Your Health Insurance premium amount differs based on your personal and medical profile. Following are the factors influencing them:  


This is a primary factor that insurers check when determining Insurance premiums. You become more vulnerable to a few health issues as you age. Considering this, you need more funds to cover your medical expenses as the Insurance tenure progresses. Therefore, you have a higher Insurance premium than a policyholder younger than you.

Medical history

When buying Medical Insurance, insurers ask several questions about your current medical and family history. For instance, if you have diabetes, you may require surgery in the future to get your diabetes in control. The Insurance provider calculates the premium based on this data. Similar reasoning applies to family history.

If you have a family history of heart attacks, you are at a higher risk too. You may need to pay a higher premium to compensate for the high-risk factor.

Lifestyle habits

Besides your medical profile details, the Insurance provider also enquires about your lifestyle habits. These include smoking and drinking, harming your body. For example, excessive drinking with high blood pressure only worsens the case. You may experience a heart attack or a stroke if your blood pressure gets too high. You are charged a higher premium to compensate for the high-risk factor.

Policy duration

Your Health Insurance Policy duration has a role in determining the Insurance premium. The policies are issued for one, three, four, and five years. The longer the policy duration, the lower the Insurance premium, and vice–versa.

Type of plans

The Health Insurance Plans you opt for also affects the premiums. Since an Individual Health Plan caters to you only, the insured sum will be lower. A lower insured sum translates to a lower premium amount. As for Family Plans, the insured amount is higher as it caters to many family members. The premium amount increases with an increase in the insured amount. So, choose plans wisely.

If you struggle with calculating the premium amount, the Health Insurance premium calculator rescues you. It is an online tool that provides an estimated idea amount of the premium payable. Enter your details and calculate your premium within minutes.


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