Financial PlanHealth Insurance

5 Factors Which Determine Your Health Insurance Premium


Health insurance is finally gaining importance in India. Due to the increasing changes in the lifestyle of young adults, there is an increase in the number of lifestyle diseases, which has made life extremely unpredictable. This is why it is important to invest in health insurance for individuals of every age. Health insurance covers a number of medical expenses and acts as a shield for you in case of hospitalization. The premium amount in case of a health insurance policy will vary from one insurance provider to another. The premium will have to be paid annually and will be your regular outflow. However, there are a number of factors, which play a crucial role in the determination of the premium amount.

Pre-existing medical conditions

First and foremost, you will be required to provide your health records in order to ensure that you do not have any pre-existing medical conditions. If you have any conditions, then the company could choose to not provide you with a cover or if it chooses to give you a cover, then you might have to bear additional costs in the form of a higher premium amount. This is also one reason why it is advisable to purchase a health insurance policy when you are young. This is when you have no medical conditions and you can enjoy a cover at a low premium amount. Once you have medical conditions, you will have to bear a higher cost for the policy. The premium will vary on the type of medical condition you have and the significance of the same on your overall health and well-being. It is best to avoid hiding anything about your medical condition because the cover might be of no use if you are unable to provide complete details to the insurance provider.

Family medical history

 Your family history will have a huge impact on the premium amount you pay for the health insurance policy. If there is a history of medical ailments in your family, then the premium amount will be higher as compared to other people. If there is no history of any medical illnesses, then your premium amount will be lower as compared to others. You cannot do anything about your genes and if your family has a history of illness like heart diseases, cancer, or any other, you will be at a risk of the same, and your health insurance premium amount will be high. This is something, which is not in your hands and it is best to accept the same by being honest about the medical history of your family to the insurance provider. If you hide this information, you might not receive any benefits in case of a medical illness in the future.

 Body Mass Index (BMI)

 Individuals with a high BMI usually have to pay a higher rate of premium as compared to individuals with a normal BMI. This is because a high BMI can lead to various diseases like heart problems, diabetes, joint problems, and many others. Individuals with a higher BMI also need a specialized treatment in case of a serious illness or medical condition. A higher BMI can also cause trouble for normal procedures like pregnancy. A simple process can become quite tedious for those who have a high BMI. It will affect the amount of premium payable on the policy.

No insurance policy

If this is your first insurance policy and you are not previously insured, you will have to pay a higher amount of premium. It is widely believed that individuals who have been insured previously tend to make frequent trips to the doctors and the hospitals. This means they start reaping the benefits of the policy and are healthy as compared to individuals with no insurance policy. If you have a policy, your premium amount will be much lower as compared to an individual who has none. For your first health insurance policy, be prepared to pay a higher amount of premium. You can easily purchase an online health insurance policy, which fits your needs.

Location of stay

Various insurance companies determine the amount of premium based on the location where you stay. The insurance providers feel that the climate, culture, aversion to exercise, lack of healthy food options, and lifestyle changes come from certain areas and this leads to a higher number of medical illnesses in an individual. Hence, the companies charge a higher health insurance premium if you stay in locations, which are prone to illness and an irregular lifestyle.

These are the top five factors, which determine the amount of health insurance premium you pay. It is advisable to compare health insurance plans before making a decision. Choose a plan that has a comprehensive coverage and a low premium amount. There are many other factors like your age, marital status, and gender, which play a role in the determination of the health insurance premium. Use the health insurance premium calculator to estimate the amount of premium you will be paying on the policy. It is advisable to compare all the plans and make a well- informed investment decision. Keep your current health conditions in mind and choose a policy, which will benefit you in the long term.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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