health insurance premium calculator

Health Insurance Premium Calculator Online in India

This may surprise you – some of the key reasons for Indians not buying health insurance are: they find it confusing, expensive, and don’t have time to buy it. A survey revealed that 32.5% of people find insurance confusing, 31.8% find it expensive, and 18.8% point to the lack of time to buy any kind of health insurance. 

Health insurance companies in India have taken a proactive approach to meet various customer needs. Insurers continuously try to make the process of buying and utilising health insurance easy with the help of digital technologies. Among these technologies is – health insurance premium calculators.

Online premium calculators are one of the easiest ways to learn about health insurance costs and the premium of different health policies. Let’s learn all about health insurance calculators and how to use them to find the best health insurance plans within your budget.

  • What is health insurance premium?
  • How is health insurance premium calculated?
  • Factors that affect premium calculation
  • Online health insurance premium calculator
  • How to use online health insurance premium calculator?

 

What is a health insurance premium?

Health insurance premium is the amount of money or cost, which a policyholder pays towards a health insurance policy bought from an insurance company. Health insurance premiums are usually paid on an annual or bi-annual basis and Health vary from plan-to-plan and from customer-to-customer. Wondering how premiums are calculated? 

How is health insurance premium calculated?

There are a lot of factors that contribute to the final premium figure that insurers quote to health insurance seekers. Apart from each insurance company’s specific clauses and guidelines, factors such as the type of insurance plan, the age of the applicant, and the health condition and medical history, among other factors, are considered in determining the premium amount. It is essential to understand how each of these factors affects the premium cost.

Factors that affect the premium calculation

The type of health insurance plan

The type of health insurance plan – individual, family floater, group health insurance, senior citizen health plan or critical illness health plan, among other types of plans, is a key factor in the calculation of the premium amount. 

The older a policyholder, the more the premium amount would be. Conversely, younger policyholders pay lesser premium. The reasons for this are simple – older people are more prone to the risks of illness and hospitalization, and hence the chances of claims would increase. Now if an individual buys a family floater plan that includes senior parents, the premium of such a health plan would be more.

Similarly, critical illness health plans and specific illness health plans cost more compared to comprehensive health plans because these are high risk plans for insurers, for which they may end up paying huge claims.

Here’s an example of premiums for different types of insurance plans.

health insurance premium calculator

The age of the insurance policy applicant

One of the key factors that affect the premium amount is the age of the policyholder. Typically, the more the age, the higher the premium amount. The reason for this is quite simple. Age brings health complications and hence a greater need for health insurance and claims. 

Here’s an example of premiums for different age groups.

Personal and family medical history

Insurance companies may or may not require a policyholder to go for a pre-policy medical check-up. However, most insurers gather details of personal and family medical history to ascertain the amount of risk involved and the probability of claims. 

E.g. a person with a history of frequent claims may have to pay a higher premium amount, as the insurance company would determine from the claims history that the person is prone to hospitalisation and health risks. Moreover, those who demonstrate unhealthy lifestyle habits such as smoking and drinking, are generally charged a higher premium by insurers.

Sum insured

It is but obvious, the more the sum insured, the higher would be the amount of premium, and the lesser the sum insured, the lower the premium. Premium cost is directly related to the sum insured. By providing health insurance policies, insurers take a risk for the policyholder. Now if the sum insured is higher, the insurer would charge a higher premium towards the sum insured.

Online health insurance premium calculator

Although health insurance agents help customers to calculate insurance premium and costs, most popular health insurance companies provide online insurance premium calculators for the ease of the customers. Online insurance premium calculators come handy in many ways:

  • A customer can calculate the premium amount online and then start looking for a suitable insurance policy, instead of diving into it without any tentative budget. This would help save their time and effort and help in their personal financial planning.
  • Insurance premium calculators allow customers various permutations and combinations and adjustments, with the help of which, customers can figure out the most beneficial combinations for them.

Source: Infographic on Health Insurance Premium Calculators.

How to use online health insurance premium calculator – key steps

  • Search for your choice of health insurance company’s website
  • Most insurance companies have an online premium calculator on their website
  • Find the calculator and fill in the details as required
  • Select options according to your requirement – type of plan, number of members, age, and sum insured, etc.
  • Share your contact details
  • Click on calculate premium
  • The insurance company will share the premium amount at your contact details

Examples of online premium calculators:

health insurance premium calculator

Over to you

Now that you’ve figured all about health insurance premium calculators – it’s time to get started by using online premium calculators so that you can make an informed and calculated purchase. 

 

FAQs: Health Insurance Premium Calculator

Are online health insurance calculators correct?

Yes, most often online health insurance premium calculations are correct and provide tentative results close to the actual amount.

What are the steps for calculating health insurance premiums online?

Calculating health insurance premiums with the help of online calculators is easy. Here are the key steps:
On the calculator, feed in relevant information.
Select options according to your requirement – type of plan, number of members, age, and sum insured, etc.
Share your contact details
Click on calculate premium
The insurance company will share the premium amount on your contact details

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