Factors that can impact your health insurance premium
09 September 2020
Age: One of the most important deciding factors behind your health insurance premium is your age – the younger you are, the lower it will be. This is because your body becomes more prone to falling sick as you age and thus your premium increases as well.
Pre-existing conditions: If you already have a medical condition, it is the insurance company’s discretion to decide whether they want to offer you insurance or not. If they do, the premium will increase significantly depending on how severe it is. So, why do they do that? Simply put, the insurance provider is taking a higher risk with you since you are more likely to need medical help in the future.
Residence and profession: If you live in a town that has a higher exposure to chemicals, it makes you more prone to diseases, and the insurer is taking more risk with you. So, your insurance premium can increase in order to counter it. This is also the case if you are in a profession where your risk of falling sick or contracting an illness is higher. For example, living in a tier-1 city or working in a chemical treatment plant may require you to pay a higher premium.
Family medical history: If both your parents or two-three generations in your family have had a history of hereditary ailments such as diabetes or heart diseases, you are at a higher risk of developing it at some point. Therefore, even if tests prove you are currently disease-free, it will affect your premium amount.
Gender: As per our current understanding of how male and female bodies work, it is felt that women are more prone to chronic ailments and more likely to visit doctors. Moreover, most women go through pregnancy and receive medical care for it at least once in their lives, so a woman might be required to pay a higher premium, other things being equal.
Consumption of injurious substances: By now you must have figured that your health insurance premium is directly proportional to the risk the insurer is taking, so this is a no-brainer. If you consume alcohol or smoke tobacco, you are more likely to have cancer or kidney failure than a non-drinker/smoker. Avoid addictive substances and you can expect the premium to fall.
Keep in mind that it’s only a list of probable reasons that can hike your insurance premium, so not all insurers may follow this. Do not try to hide any condition that you may have (or suspect you have) because it can lead to claims rejection when you need the financial help. This is for the convenience of both parties and ensures ease in transactions.