Does Health Insurance Cost Vary with The Type Of Policy?

The health insurance companies set their parameters based on which they fix the price of the insurance. One of the factors is the type of policy due to which the cost of the health insurance policy varies. Read more to know what are the other factors that affect the price of the health insurance policy.

Most people get confused with the different health insurance prices that policyholders quote. In addition to the sum insured, other factors add to the cost of the insurance premium.

Factors Affecting Health Insurance Premium

The cost of medical insurance policies varies based on the following factors:

Type of Health Insurance Policy

There are different types of health insurance plans like Individual health plan, Family Floater Health plan, Critical illness plan. All these three types of health insurance plans have different premium cost. Critical health insurance plans have higher premiums than individual health insurance and family floater plans.

Similarly having an individual health insurance plan for every member of the family is expensive as compared to a family floater plan. So, when you compare health insurance quotes, make sure you assess your needs and look for a suitable policy.

Age 0f The Insured

If you take a health insurance plan at a lesser age, you pay a lower premium as compared to if you buy an insurance plan at an older age. As you age, you are more prone to diseases, at times with age, you have pre-existing illnesses. So, at an early age, the probability of claiming the health insurance policy is lesser as compared to an older age.

Lifestyle Disorders

Premium costs vary based on lifestyle habits, like smoking and drinking. Most of the times, health insurance companies deny insurance to smokers and people who are addicted to consuming alcohol. Few of the companies do offer them health insurance at a much higher premium considering the high risk of falling ill and filing a claim.

Pre-existing disease

Those having a pre-existing illness can have life insurance but with few conditions. One that they would have to pay a much higher premium and other that they have a more extended waiting period before they could file a claim. Considering that people suffering from the pre-existing disease are more likely to file a claim sooner, the premium amount is significantly higher in any health insurance that you purchase.

In the case of pre-existing disease, rejection of a claim is also higher if the policyholder has not completed the waiting period.

Family Medical History

At times due to family health history, the health insurance providers may ask you for a higher premium considering that you may inherit the diseases from your parents. Mostly the insurers ask for family history if you purchase health insurance after a certain age and charge you a higher premium if you have a family history of diabetes, blood pressure, thyroid, arthritis, and other genetic disorders.

Duration of the policy

You can purchase a single year plan or a multi-term policy for both individual health insurance policy and family floater insurance. The premium for the single-year policy is higher than the multi-term policy. Also, insurance providers may provide a discount on multi-term policy.

Geographical Location

Those living in cities like Mumbai and Delhi have to pay a higher premium as compared to towns because of the cost of living, and medical expenses are also high in these cities.

So, the type of policy is not the only factor for the varied cost of health insurance plans. The above factors also play a crucial role in deciding the sum assured and the premium paid towards a health insurance plan.

Leave a Reply