Important Revision of the Health Insurance Premium

You are not the only one who has noticed an increase in your premium for health insurance. Insurers have updated their premium rates for health insurance to reflect the IRDAI-imposed guidelines regarding standardisation of exclusions in health insurance. This was done as a temporary measure to allow seamless transitions of existing products and ensure viability.

In addition to inflation-related factors, there are many other factors that could cause your premium revision at renewal for your health insurance policy, such as your age, policy features and claims made during the year. Also, your overall health, well-being, and general health.

What is Health Insurance Premium?

The premium for health insurance refers to the monthly amount that you have to pay to an insurance company in order to receive medical coverage. It can also be considered the cost of maintaining a current health insurance policy. The chosen insurer will be responsible for covering hospitalization expenses and treatment for a medical emergency. The most common method of revising a person’s health insurance premium is to take into account their lifestyle and current health.

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The premium paid by the policyholder for a monthly or annual health insurance plan is payable each month. Individuals who are covered by health insurance through their employer pay it via payroll deductions. You may be required to pay a premium and a deductible to receive medical care. You can request a revision of your health insurance premiums to meet your needs.

How is the Health Insurance Premium Calculated?

There are many factors that determine the cost of a particular plan’s health insurance premium. Two healthy people of the same age might have to pay different premiums for their health insurance. These factors can also impact the rate at which your health insurance premium is renewed. An online premium calculator allows you to see how your health insurance premium changes based on these factors.

These factors are used to calculate the premium revision for health insurance.

  1. Your medical history

The premium for health insurance will be affected by your current health and any pre-existing conditions. To determine your medical history, you must undergo a medical exam when you purchase a health plan. These medical tests give the insurers information about your current health and lifestyle habits.

Pre-existing conditions are more likely to make a claim. The insurers will offer you a plan that is tailored to your risk profile based on your health. If you have been diagnosed with a critical illness after purchasing the plan, the insurer will inform you about any restrictions.

The premium revision can be done during the renewal of your plan.

  1. Gender and age

These factors have a major impact on the premium for health insurance. The rise in insurance premiums is also a result of your age. Because of this, your risk of developing health problems with age increases.

This is why many people consider a higher age for health insurance premium revision. A higher premium will be charged for a particular type of health insurance plan than the current cost. Women pay a slightly lower premium for health insurance than men. Women are less likely to suffer from health problems like stroke and heart attack.

  1. Types of insurance policies

Your type of insurance policy will also affect the premium. There are two types of plans: individual and family floater. Individual health insurance can be purchased for your spouse, children, parents, and siblings. You can also choose to include all family members in a single policy by purchasing a family floater.

With more people covered under one plan, the premium for health insurance rises. You can request a revision to your current health insurance plan if you feel that it does not meet the changing needs in your family.

  1. Lifestyle guidelines

Your lifestyle can have an impact on your health and ultimately your insurance premium. Insurance companies will charge a higher premium if you smoke or drink alcohol frequently. Some policies may not offer a health plan due to the lifestyle of the policy buyer.

Neglecting healthy lifestyle habits can have lasting effects. Even if you have stopped following these unhealthy lifestyle habits, it is a good idea to speak with your insurer about whether you need to revise your health insurance premium.

Need for a Revision to the Premium for Health Insurance

Rising medical inflation is one of the main reasons why health insurance premium revisions are necessary. According to Economic Survey 2021, it is higher than the retail inflation rate. This makes Indian citizens need to have a health insurance policy.