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What is the Affordable Amount for Health Insurance
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What is the Affordable Amount for Health Insurance

The perturbing outbreak of the COVID-19 has inspired everyone to focus on purchasing various low-premium health insurance policies in India. The second wave of the COVID-19 has forced everyone to evaluate their healthcare requirements and buy affordable health insurance policies as per their needs and requirements. A low-cost health insurance India cover allows you to pay for expensive medical treatments, hospital bills (even in the case of the COVID-19), accidental injuries, or ailments.

Some astonishing facts about Health Insurance in India

  • Only 20 percent of the total population in the country has health insurance
  • Only 18% of the total population in urban cities is covered under a health insurance policy
  • Just 14% of the total rural population is covered under any health insurance

Let’s take a look at how a cheap medical insurance policy is beneficial during the COVID-19 pandemic

  • A comprehensive health insurance policy offers coverage for hospitalization expenditures
  • A health insurance policy reimburses the costs of medication and laboratory tests, ambulance, doctor fees, etc.
  • Some health insurers have also introduced specific coverage for OPD expenses up to a certain limit
  • Health insurance minimizes your out-of-the-pocket expenses as it offers you a cashless treatment in the network/empaneled hospitals
  • Some health insurance plans offer coverage for the COVID-19 treatment, including the cost of PPE kits, masks, ventilators, ICU charges, etc.
  • Some plans even offer coverage for maternity and new-born baby
  • Health insurance policies bear the costs of surgeries like open-heart surgery, liver transplantation, and many daycare treatment procedures such as cataract surgery, varicose veins, etc.


Medical inflation is also rising day by day, and as a result, the costs of healthcare treatments are enhancing simultaneously. A private hospital will drain out all your savings in a few days in case of hospitalization due to COVID-19 or other diseases. A health insurance policy will safeguard your savings along with your health.

Once you submit your policy application documents, your insurer will evaluate your profile to decide the premium amount. Your health insurance premiums depend on certain factors, including age, medical history, profession, location, etc.

Let’s take a look at health insurance premiums for various health insurers. All these health plans are ideal for an individual of 30 years, his wife (28 years old), and two children (10 and 5 years old). The sum assured amount is 10 lakh.


Plan name Premium amount
Bajaj Allianz Health Guard-GOLD Rs 19,191
ICICI Lombard Complete Health Insurance Policy Rs 20,208
Max Bupa Health Companion Rs 21,631
Star Health Family Health Optima Rs 21,569
Care Health Insurance Plan Rs 21,690
SBI Arogya Premier Rs 31,752


Factors that influence Your Insurance Premiums

  • Age

Once you grow older, your premium amount will be on the higher side. Older people are more prone to various diseases than young adults. Youngsters are healthy, and they occasionally visit a doctor. So, the experts suggest that you must purchase a health insurance policy at an early age. You will get comprehensive coverage and enjoy a plethora of benefits by paying small premiums at a young age.

  • Medical history

Suppose your family members suffer from critical diseases like heart disease, cancer, or have a pre-existing disease. In that case, you need to pay high premiums for your policy. On the other hand, if you don’t have any pre-existing conditions and have maintained a healthy lifestyle, then your premium amount will be lesser.

  • Choice of profession

People working in high-risk environments like hazardous substances, radiation, chemicals, construction sites; need to pay higher premiums for their health insurance policies because insurers assume that they are more vulnerable to the risk of cardiovascular diseases.

  • Body Mass Index (BMI)

Obese people or those with a higher BMI need to pay a higher premium than those with normal BMI because these people are not susceptible to various life-threatening diseases such as heart problems, cancer, joint problems, diabetes, etc.

  • Smoking habits

According to the report published in the Lancet, India has about 11.2% of the total smokers in the world. Smoking or chewing tobacco uplifts your health risks, and according to health insurance companies, these people are high-risk insurance buyers. Thus, smokers need to pay higher premiums for their policies as compared to non-smokers.

  •  Geographical location

Your insurance premiums also depend on your location.

  • The type of plan you selected

Health insurance companies often calculate your premiums based on the type of policy plan you have selected. For a group health insurance policy, your premium is less as compared to an individual policy. In addition, your premiums will enhance once you incorporate riders/add-ons into your policy.

  • Co-pay feature

If you choose the co-payment option for your health insurance policy, your premium will be less. Under the co-pay clause, a policyholder pays a certain amount of claim for his/her treatment. The insurance company will pay the remaining amount. This clause also reduces your premiums.

  • Marital status

For married people, health insurance premiums are lower in rates. So though there is no scientific evidence whether married people live longer and healthier lives or not, they still don’t need to pay a hefty premium amount.

  • No insurance yet

Suppose you are not covered under any policy. In that case, your premiums will be on the higher side because health insurance companies assume that these uninsured people may need to visit doctors or hospitals repeatedly.

These are some factors that are responsible for your health insurance premiums.

If you can’t afford too many premiums for your health policy or are unsure which plan will be suitable for your healthcare requirements, you can get help from an insurance aggregator online. Using an online premium calculator, you may compare various policies and then handpick the most suitable one for you.

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