How the premium of medical or health insurance is calculated ?
Living healthy live is something that most of us yearn for. In order to achieve this, people resort to many activities such as yoga, regular exercise and take other related measures
Living healthy live is something that most of us yearn for. In order to achieve this, people resort to many activities such as yoga, regular exercise and take other related measures. A Health Insurance Policy serves as a beneficial financial instrument for an individual's road to a secure life. Medical insurance provides financial assistance for the treatment of critical illness or accidental losses. The health insurance plan includes covers for pre-hospitalization, hospitalization, post-hospitalization, emergency ambulance charges, health checkups fees, etc.
These benefits make health insurance a must buy for every individual and household. However, most people when furnished by the details of premium amount for a particular set of coverage, they seem to accept that at it as given. Do you know that you are not always required to pay the amount that is asked of you? You may have a say in the determination of the premium amount within a defined space.
Precisely for this reason one needs to know how premium of health insurance is calculated. This will give you insight and at the same time will enable the applicant to get the most value for their investment. HDFC ERGO medical insurance policy makes use of the premium calculator to determine the premium amount for a given sum insured and a set of coverage. Age: This is the most important factor that influences the rate of premium for a given health insurance plan. The amount of premium that the insured pay is directly proportional to the insured’s age. This information seems very trivial while applying for a health insurance policy but nevertheless play and important part in the premium determination process. Hereditary ailments and previous medical/ personal history: If the applicant has pre-existing conditions, then it is also been considered while calculating the premium.
Hence, people with previous medical history have to shell out little more compared to other. Every insurer lists down the diseases and ailments that are excluded from coverage. Hence one must therefore carefully choose the policy by exhaustively going through the list of excluded illness, as this is critical. Sum insured: The amount that the insured requires as compensation benefit will positively effect the rate of premium. As a matter of rule, higher the Sum Insured higher is the premium amount. Therefore, one needs to make a conscious decision and strike a balance between these two components. Individual/Family floater: The calculation of the premium of the medical insurance will also depend upon the type of policy that is desired by the applicant. There are two types of policy to choose from – individual and Family Floater. All these factors are taken in to consideration by the insurance provider to reach at a definite premium amount on which the insurer is ready to provide cover to the applicant.
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