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A health insurance premium calculator helps you determine the premium costs of a health insurance plan you want to purchase. When purchasing a health insurance plan the first thing that comes to mind is if the premiums of your desired policy fall into your budget. Hence, it is becoming increasingly important to calculate the same. Health insurance policies have terms and conditions including charges like deductibles, co-pays, sub-limits, rider premiums, and more that affect the overall cost of a premium which can be calculated on an online health insurance calculator.
How Health Insurance Premiums are Calculated ?
A health insurance calculator is an online tool that helps you calculate the estimated premium charges by considering various factors like age, number of members covered, sum insured, riders, and city. A health insurance premium calculator is an excellent tool that can help you compare other health plans giving you a better purchase idea.
PolicyX health insurance premium calculator is an efficient tool that will help you determine the estimated premium costs of your desired health insurance plans.
Simply insert the following basic details, and the PolicyX health insurance premium calculator will do the rest for you.
Health Insurance premium calculators are useful to customers in more ways than one when purchasing a health insurance plan.
A health insurance premium calculator helps you plan your finances by providing you with an estimate of health insurance premiums that you are supposed to pay which in turn will help you adjust other expenses accordingly minimizing the chances of dropping your health plan mid-term due to expenses.
Using a health insurance premium calculator will enhance your overall purchase experience as they are quick and accurate tools that are free of cost. Using a health insurance premium calculator will allow you to save time and energy which would otherwise be spent in contacting insurance agents or reading literature and policy wordings to understand different kinds of charges applicable
Medical insurance premium calculators come with various filters allowing customers to check health insurance premiums with various combinations. Accurate premiums can be calculated for your desired health insurance plans, by applying a rider filter, or by adding family members you want to cover, and more.
Using a health insurance premium calculator will facilitate accurate premium comparisons as you add different riders, add-ons, additional members, and different health plans.
A majority of health insurance companies offer various discounts and benefits on online purchases of health insurance plans. Customers can get the estimated health insurance premiums after all the discounts and benefits are added to the health insurance premium calculators.
The determining factors of health insurance premiums are
Age plays a significant role in determining the health insurance premium for individual and family floater health plans. Individuals purchasing a health insurance plan at a young age will have to pay lower premiums as with growing age the risk of injuries, ailments, and critical illnesses increase.
Health insurance premiums are determined after considering your current lifestyle such as smoking or drinking might cause an increase in health insurance premiums as it is a health hazard and will increase the chance of filing a claim. Health plays a vital role as many insurers offer fitness discounts to people who keep themselves in good health on premiums when purchasing a health insurance plan.
Health insurance needs vary for both genders. Females tend to file fewer healthcare claims as they have a higher life expectancy than males which is one of the reasons for health insurance premium discounts for females. However, it is important to note that health insurance premiums do not have a huge difference due to gender and can be checked with the help of a health insurance premium calculator.
Multiple health insurance riders like critical illness, personal accident, hospital cash, OPD care, and others are available for policyholders which will affect your health insurance premiums. You can calculate premiums using the health insurance premium calculator by adding the desired riders to your health plan.
The amount of sum insured entered in the health insurance premium calculator is one of the prime factors that affect your health insurance premiums. The higher the sum insured the more will be the premium to be paid.
If you opt for a family floater health insurance plan the health insurance premium calculator will calculate health premiums as per the number of dependents added under the health plan. Increasing the number of family members to be covered will increase the overall premium.
The premium of a health insurance plan depends on the policy tenure opted by the insurance holder. Premium cost decreases when you opt for a long-term health insurance plan. Additionally, multiple health insurance providers offer long-term discounts on premiums.
Customers residing in tier-1 cities will have to pay a higher health insurance premium as compared to those living in tier-2 or tier-3 cities. Health care facilities vary from region to region affecting overall health insurance premiums.
Health insurance premiums are affected by these additional factors:
Customers are entitled to a no-claim bonus on completing a policy tenure without filing a claim. No-claim bonuses come into effect during policy renewals wherein there is an increase in the total sum insured amount by a percentage fixed by the insurance provider. This allows customers to enjoy enhanced coverage at no additional premiums.
Customers opting for a higher deductible or co-pay will have to pay a lower premium which will lead you to pay more out of pocket at the time of filing a claim.
Mortality refers to the frequency of death and the risk of serious ailments in a given population. If the mortality rate in a country is high it affects health insurance premiums directly as there is an increased chance of a large population filing claims frequently. Mortality rates vary with different age groups and are generally higher in older age groups as they are prone to age-related ailments like diabetes, high blood pressure, heart ailments, strokes, and more.
Health insurance companies spend a large amount of money to design, market, and advertise health insurance products. There are additional costs like brokerage costs, insurance agent costs, sales literature print costs, operational expenses, and more which are borne by insurance companies to make the right health insurance product available to customers across the nation. A certain amount of these expenses are recovered from the premiums charged to insurance holders.
Insurance companies design various health insurance plans catering to individuals, families, corporations, and businesses. Policy underwriting is the process through which the insurance provider analyzes the possible risks related to issuing a health insurance policy to a specific individual, or group. The process helps the insurance provider to assess all the factors and predict if the insured can make a costly claim and hence adjust their premiums accordingly during policy purchase.
All insurance providers invest their capital in the public sector due to low risk as investing in the private sector leads to increased risk. The investments made by insurance companies are regulated by IRDAI. All the premiums that insurance holders pay to a certain extent are determined based on the returns of these investments.
With the increasing medical inflation, more and more people have realized the importance of purchasing a health insurance plan. However, a large number of policyholders are concerned about insurance premiums when making a purchase decision. We have discussed below 5 important tips to help reduce health insurance premiums:
Top-up health insurance provides a wide range of sum-insured options at economical premium rates. These plans enhance the overall coverage for individuals and families in addition to the existing health plan.
To avoid health insurance policy cancellation you must pay your renewal premiums on time. This will not only continue your health plan coverage but also add multiple rewards and benefits that have been accumulated throughout the policy period like no-claim bonus, fitness and wellness rewards, and more which help at the time of renewal premium payment.
Opting for a higher deductible or co-pay means that the set amount will be your share of the health insurance plan. This is directly related to lower health insurance premiums. However, it is advised to opt for a deductible that is within your financial capacity as you will have to pay this amount out of pocket during any medical emergency or hospitalization.
Health insurance premiums depend highly on the sum insured value chosen by the policyholder. It is advised to opt for at least 50% of your annual income as the sum insured amount. Do not overestimate the sum insured when buying a health insurance plan as the premiums will be higher. Opt for an adequate sum insured after carefully analyzing your needs and requirements.
Multiple health insurance providers offer a discount on premiums at the time of purchase if the policyholder lives a healthy lifestyle and has maintained their BMI. Individuals who do not smoke are also eligible for discounts on premiums as they are less prone to illnesses and hospitalizations making them a low-risk individual for the insurer.
Investing in a health insurance plan does not only safeguard you from medical emergencies but also offers you tax benefits making it an excellent financial tool for individuals of all age groups. Tax benefits are available under section 80D of the Income Tax Act of 1961. Through section 80D you can avail of up to INR 25,000 if you are aged below the age of 60 years. However, if you are a senior citizen and are above 60 years of age you are eligible for a tax benefit of up to INR 30,000 in a financial year.
Policyholders are also eligible for up to 5,000 rupees tax benefits for annual health check-ups.
A medical insurance premium calculator offers you accurate premium calculations and helps you compare health plans with variables like different add-ons, deductibles, family members to be added, and more. It is a powerful tool helping you save time and effort by providing you with all the information you need and in turn helps you make a better purchase decision.
A health insurance premium calculator is an online free tool that helps you calculate the accurate premiums for the health insurance plans you want to purchase or want to compare.
There are multiple reasons to calculate premiums with the help of a medical insurance calculator such as
Health insurance premium calculators require you to fill in details like age, Date of birth, gender, sum insured required, annual income, number of adults to be covered, and more.
Yes, health insurance premium calculators require you to fill in fields like smoker or non-smoker which is a major deciding factor of premium rates.
Health insurance premiums are affected by multiple factors like the amount of sum insured chosen, number of family members covered, add-on and riders opted, co-pay or deductibles opted if any, gender, fitness levels, annual income, and city.
Yes, health insurance premium calculators help you compare health insurance plans along with accurate premiums which in turn helps you make an informed purchase decision. To compare different health insurance plans, you can simply visit PolicyX and compare health plans or contact our insurance experts.
You do not have to pay anything to use a health insurance premium calculator online as it is a free tool that can be used by everyone.
You are eligible for tax benefits of up to INR 25,000 if you are below the age of 60 years and INR 30,000 if you are above the age of 60 as per section 80D of the Income Tax Act, 1961.
Customers can calculate and compare different health insurance premiums with the help of the PolicyX health insurance premium calculator. Filters like specific health insurance companies, additional coverage if needed for maternity, organ donor expense, etc. are also available.
When calculating health insurance premiums you have to be transparent about your health status to calculate accurate health premiums. If you have a pre-existing disease health insurance premiums will be higher than regular.
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Simran is an insurance expert with more than 4 years of experience in the industry. An expert with previous experience in BFSI, Ed-tech, and insurance, she proactively helps her readers stay on par with all the latest Insurance industry developments.
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