Health Insurance Premium

6 Factors that Could Impact your Health Insurance Premiums

Life is uncertain; you never know what happens and why. In such a situation, the most important aspect for a person is healthy. But the increase in medical cost and number of diseases makes it highly impossible to live without insurance. Health insurance is a must for all persons. This type of insurance can be taken out individually or for a family as a whole.

Read through the article to learn about health insurance, cost of health insurance and other details.

What is a health insurance policy?

As the title suggests, health insurance is a type of insurance coverage. This type of insurance policy covers the medical, surgical and dental cost of an insured person. In other terms, the policy reimburses the insured person for the expenses made towards illness, injury and other similar expenses.

Usually, for health insurance, you need to pay a sum called the premium. The premium is paid annually, monthly or quarterly. The average cost of health insurance policy for a couple is around 10,000 rupees.

What is a health insurance premium?

Health insurance or any insurance requires you to pay a sum of money. The sum of money that you pay to the insurance company is called as health insurance premium. The premium amount is the money that you pay and charge by the insurance company for the policy a person chooses.

The health insurance premium is usually paid monthly. It can also be paid annually or quarterly; there are a number of ways to bill the premium. A person having health insurance must pay the premium to keep it active, irrespective of whether they use it or not.

How much does health insurance cost?

The health insurance cost is not fixed. There are a number of factors that determine the cost of health insurance. The cost of health insurance can also be termed as the premium a person pays to the insurance company.

Factors that determine the price of health insurance are as follows

  • The law of the state, this can be federal or state law affects the cost of health insurance.
  • Type of purchase. The cost is determined whether the insurance is bought individual or through an employer.
  • In case of purchase through employer the capacity of the employer and size of the company.
  • The salary of the purchase purchasing the insurance.
  • Finally, the state you live in and the type of plan you choose.

Features that could impact health insurance premium

The list of factors that could impact the health insurance premium is as follows:

Age and Gender

The first factor that could impact the health insurance premium is age and gender. The age of the insurer plays an important role in determining the premium. Older the person higher the premium you need to pay as the chance of falling ill of such a person is more. Older individuals are seen as higher-risk customers by the insurance company.

Location of the person who wants to get insured

The next important factor that would impact premium is geographical location. The person who is willing to get insured must declare the location. The country or state in which you live is also considered when determining the premium for health insurance.

Medical history of the person

The medical history of the person who is getting insured is also considered by determining the premium. The person who is willing to get effective health insurance must declare their complete medical history. The premium rate of the insurance policy is less for a healthy person. In case a person is suffering from some ailments, his premium rate is high.

Smoking and drinking

The fourth factor that impacts the premium of health insurance is the lifestyle of the person who wants to get insured. If the insured person has a habit of smoking, alcohol or drugs, then they are at risk to contract diseases easily. So the premium rate of such a person is higher than the others.

The employment of the person getting insured

The fifth and most important factor that affects the premium rate is the profession of the person. A person is part of a profession that is risky; then the premium rate is high for a total health care plan.

The type of insurance plan

The last factor that impacts the premium rate of health insurance is the type of plan. The sum insured and add-ons of the policy have a direct relation with the insurance policy.

Bottom Line

With this, the article on the health insurance policy and factors impacting its price is concluded. Health insurance is a significant investment you make in your life. So be wise when choosing the plan and consider total health care plans.

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