health insurance premium calculator online in india

Health Insurance Premium Calculator Online in India

Buying a health insurance plan was no easy feat for Vishal. Even with a work experience of being an accountant for 10 years, the sheer jargon and quantity of it was overwhelming. 

One of the major challenges faced by Vishal, and a majority of individuals like him is to calculate the right premium for health insurance. We’ll talk about it. Here are the most important factors that you must be mindful of:

  1. Gender
  2. Medical history 
  3. Age
  4. Type of health plan
  5. Lifestyle factors
  6. Other coverage features
  7. Policy term
  8. No-claim bonus

Protip: Use our health insurance premium calculator, Vishal and a lot of individuals with similar consumers feel it’s an extremely useful tool to compare different plans and select the best policy for yourself. 

What is Health Insurance Premium?

The health insurance premium is a fixed amount of money you pay an insurer to ensure the continuity of medical coverage as part of your health insurance policy. It is a pre-determined sum of money that depends on various factors which you need to pay to your insurance provider to avail coverage and benefits offered under a health insurance plan. 

The policy buyer is required to disclose necessary information about themselves to the insurer which then determines the premium amount using the health insurance premium calculator and calculates the premium required to be paid. The information provided by the policy buyer acts as a parameter on the basis of which the amount of premium would be calculated.  The factors that affect the premium are policy buyer such as sum insured, age, pre-existing illness (if any), number of members that need to be covered under the plan, etc., policy term, and policy options selected.

Why should you use an online health insurance premium calculator?

Calculating insurance premiums manually can be extensive and cumbersome. You are also likely to make mistakes and end up with inaccurate results. A healthcare cost calculator allows you to make the best decisions and select the best health insurance policy with optimum affordability and value for money. With a health insurance premium calculator, you can:

  • Estimate premium and costs before purchasing a health plan
  • Compare different plans and make informed decisions
  • Avoid cumbersome paperwork
  • Estimate costs and plan budget
  • Save time and efforts 

Factors affecting health insurance premium

The premium amount you pay for a health insurance plan is determined by a wide range of factors. These factors essentially determine the risk associated of covering a person under a health insurance plan for an insurance provider. While there are a lot of other factors involved, these eight factors are the primary factors that affect health insurance premium:

  1. Gender

It is believed that females are at lower risk of getting heart attacks or strokes. They are also known to be more likely to visit doctors, take prescriptions, and be subject to chronic diseases. On the other hand, men are prevalently more likely to go out for work and, thus, more likely to meet with accidents or fall sick. In addition, drinking and smoking are the other factors which could expose men to higher chances of cardiac diseases. These are some of the reasons why insurance providers take gender into account while deciding premiums. Make sure you calculate your premium amount accurately with the help of healthcare cost calculator that takes your gender into account while calculating premiums.

  1. Medical history

The policy applicant is also required to provide their health records and sometimes have to go through a pre-medical screening to ensure there aren’t any pre-existing medical conditions. If a pre-existing medical condition is there, then it up to the insurance provider whether they decide to cover the condition under the policy or not. If they decide to cover the pre-existing medical condition, your premium will increase considerably. If they don’t, you will have to bear the costs.

The best health insurance plans ensure that you get the most comprehensive coverage including pre-existing conditions at highly reasonable prices. In conclusion, depending on your medical history, your premium will increase. Having lifestyle conditions like blood pressure or diabetes or more severe ailments like cancer or strokes means that you’ll have to pay a much higher amount of premium. The online health insurance premium calculator takes medical history into account and helps you calculate your health insurance premium accurately without any hassles.

  1. Age

Age determines the level of coverage you would require. A higher age is indicative of a higher premium. This is because, as you grow older, you become more prone to health risks and hospitalization. Health insurance premiums are based on the probability of the policyholder falling sick. Hence, older individuals are high-risk customers for health insurance companies resulting in higher premiums.

As per, the cost of premium for older people is nearly three times higher than younger people. Most insurance providers have age-wise slabs to determine premiums and others apply a small yearly increment. Vishal’s mother, who is 80 years old, would need more extensive medical care than he would. It is only logical that her premiums would be higher than someone who only requires annual check-ups. Use the health insurance premium calculator to see how age can affect the premium of a health insurance plan.

  1. Type of Health Plan

Families who opt for individual health plans each pay higher premiums than families who are covered under family floater plans. The amount of premium you’ll have to pay depends significantly on the type of health insurance you choose as well. A group health insurance policy has a lower premium as compared to an individual policy.

Thus, Families who opt for individual health plans each pay higher premiums than families who are covered under family floater plans. Similarly, including optional and add-on coverages to enhance your medical cover also increases your premium amount marginally. Furthermore, if you are an employee, a group health insurance would cost you less. However, you might end up spending more on out-of-pocket costs.

Whichever type of health insurance plan you decide to go with, make sure you compare the plans under that category offered by different health insurance companies. Additionally, don’t just stick to the coverage features while comparing these health insurance plans. Use a health insurance premium calculator to calculate your health insurance accurately for different health insurance plans and make the right call.

  1. Lifestyle factors

Insurance companies can increase your premium significantly if you are a tobacco smoker. Some insurance companies even refuse to insure people who have the habit of smoking, chewing tobacco or snuff. The surcharge could be as high as 50% depending on different companies. Even policyholders with a heavy drinking problem could have to pay significantly higher premiums. You can understand why these lifestyle factors affect the premiums of health insurance plans by taking a look at health issues that these substances could cause. Naturally, the risk of covering individuals who have the habits of smoking or drinking is much higher, hence the higher premiums.

Clearly, lifestyle factors and habits affect your health insurance premiums significantly. But there are some plans that give less weightage to these factors than other health insurance policies. Find out about the health insurance plans that give the least weightage to lifestyle factors by comparing plans using health insurance premium calculator to calculate their premium amounts.

  1. Additional Coverage Features

If you opt for a plan with lower out-of-pocket expenses, your premium will be higher. Deductibles can be thought of as the lower limit of a claim amount. Deductible is the amount that a policyholder has to pay before the insurance provider is liable to pay the claim. To put it simply, the insurer is liable to pay the claim amount only when it exceeds the deductible. Lower the deductible, lower the out-of-pocket expenses, and hence, higher the liability risk. This is why plans with lower deductibles have much higher premiums.

Similarly, co-payment feature allows you to decrease the premium by sharing the liability with the insurance provider. The co-payment ratio in the clause represents a portion of the claim which is payable by the policyholders themselves. The rest of the claim is settled by the insurance provider. Naturally, having a lower co-payment feature means less out-of-pocket expenses, and thus, lower premiums.

Furthermore, plans with a greater number of limits and sub-limits will have much lower premiums compared to those which have no sub-limits. In conclusion, it is better to find the sweet spot between additional coverage features and premium amount. Compare the coverage features and the respective premium amounts of different health insurance plans using health insurance premium calculator and select the best plan for yourself.

  1. Policy term

The policy term is also one of the central factors in determining the premium for your health insurance plan. If you choose a policy with a longer policy term, the premium will be less. This may not be the case for a health insurance plan with a shorter policy term. If you buy a 1-year insurance, the premium will be lower when compared to a 2 or 3-year plan. However, it is recommended to buy long-term policies to avail discounts.  Using a health insurance premium calculator can help you make optimum decisions about details like sum insured, policy type, coverage type, additional coverage features. In addition, choose the best health insurance plans that also offer lifetime renewability in case you change your mind.

  1. No-claim bonus

The best health insurance plans offer various benefits for a claim-free year known as the No Claim Bonus. Some offer an increase in the sum insured by 3-5% whereas some offer discounts for the following policy year. So, if you only have a small claim to make at the end of a policy year that you can easily handle, it is better to bear those expenses on your own. This will help you enjoy handsome discounts on premium amounts for the following policy years.

Benefits of using an online health insurance premium calculator?

Using a health insurance premium calculator can prove to be very beneficial for policy buyers in making the right decisions about buying health insurance policies. These online premium calculators also allow people to compare different health insurance plans on the basis of their premiums. This gives them the ability to track the value for money and make an informed decision rather than just focussing on coverage features and benefits.

Here are five compelling reasons to use an online health insurance premium calculator:

  1. Better financial planning

The biggest reason for using an health insurance premium calculator is that it allows you to stay on top of your health insurance costs and hence allows you to manage your finances better. It allows you to calculate the estimated health insurance premium accurately. So, you can prepare for the premium beforehand so that they don’t cause sudden financial burden or instability when you buy the policy. Thus, using an online health insurance premium calculator allows you to  plan your finances effectively for the future.

  1. Reduced risk

Using an health insurance premium calculator also reduces the risk of defaulting your health insurance premiums significantly. By allowing you to calculate the estimated health insurance premium of the policy you wish to buy accurately, it lets you review your choice in terms of affordability. It lets you compare multiple policies online and calculate their premium to ensure that you chose a health insurance plan that provides you the best coverage while fitting perfectly in your budget. This decreases the risk of defaulting premium payments. Naturally, having an idea about the premium you’ll be required to pay under a plan marginally reduces the risk of defaulting the premium payments.

  1. Coverage aligned with your requirements

Buying a health insurance policy is a long-term investment and must not be rushed with, especially when deciding the coverage features. You must buy a health insurance policy that perfectly suits your medical needs as well as your financial requirements. A health insurance premium calculator allows you to choose the best health insurance policy after customizing it according to your needs while ensuring affordability with an adequate coverage.

  1. Get the ideal coverage with add-ons

Apart from calculating health insurance premium, health insurance premium calculators also help you enhance your coverage. After you enter your details, the online premium calculator displays the most fitting health insurance quotes. Along with the insurance quotes, it also suggests the optional add-ons to enhance your coverage in case the estimated premium amount is considerably less than your budget for health insurance. Additionally, it allows you to get the ideal coverage by letting you know how much different add-ons will cost you.

  1. Make the right decision

A health insurance premium calculator makes it marginally easy to compare, analyze, choose, and inform yourself about various health insurance plans along with their benefits and premiums. This makes sure that you make the best buying decision. Select the best health insurance plan for yourself with premium calculator that gives you the best benefits for the premium you pay and fits perfectly in your budget.

How to use online health insurance premium calculator?

Almost every health insurance company has an online premium calculator on their website. Here’s an example:

  1. Enter the required details: gender, age, number of members, sum insured.
  2. Provide your pin code and contact number.
  3. Click on calculate premium and get quotes.

This will give you an estimate of the premium amount, details of which will be shared on your contact number. Estimating the premium amount for health insurance accurately goes a long way in helping you choose the best health insurance and reducing health insurance premium costs. Hence, be sure to calculate your premium amount with the help of healthcare cost calculator.

How can you reduce health insurance premium costs?

  • Sign up for a long-term policy to get premium discounts
  • Opt for a family floater plan over individual plans
  • Purchase at an early age
  • Pay higher deductibles
  • Compare quotes online 
  • Use a health insurance premium calculator to compare plans

When it comes to calculating health insurance plans, it’s tempting to pick the cheapest plan. However just like anything else, you can’t just look at the price tag. You need to make sure that you’re getting the best value for money. Using a health insurance premium calculator allows you to select the best health insurance plans by ensuring that your insurance needs are fulfilled perfectly while maintaining premium affordability.

No two health insurance plans are the same and coverage options can vary greatly from one plan to the next. Make sure you consider the following when using a health insurance premium calculator.

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