How is health insurance premium calculated?
You might have often wondered how the amount you’re paying as premium was calculated. Most people think it’s the coverage amount, and tenure that determine the premium costs. While those are necessary factors, they are not all there is. A major factor that determines your health insurance premium is age.
The amount you pay towards premium when you’re younger (let’s say 25 years) will be much less compared to what the rate would be for a 45-year old, for the same coverage. This is due to the fact that as we age, our health deteriorates. We are more likely to fall sick or develop a life-threatening disease later in life, than at the peak of our youth. This also means, that your existing health status and lifestyle habits will affect your premium rates as well.
You can easily calculate your premium cost with a health insurance premium calculator. Available online, these estimates are highly beneficial tools that give you an exact break down of how the premium was derived at. All you have to do is fill in a few questions and await for the rates. The premium calculators are useful for planning your finances right.
Factors affecting health insurance premium?
There are several important factors that determine the rate of health insurance premiums, such as:
You may have little control over some of these factors mentioned above. However, by choosing a healthier lifestyle, and starting early, you can definitely reduce your premium costs. That said, don’t run behind a cheaper policy as it may not give you enough benefits. Choose a policy that provides you the maximum protection that you need.
Read More News:
ZestMoney Receives $13.4 million in Series A2 Funding
Revv Receives Series B Funding from Hyundai Motors