Are You Paying a High Premium for Your Health Cover?

Health is your most important asset; however, only about a third of the population is covered under an insurance policy. An important reason for the low penetration is the premium.

Zone-based pricing

Currently, the premium is based on your age, health condition, and lifestyle. Another aspect that needs to be taken into account is your location. You may think about how does location come in the picture. However, consider if you reside in a metro, the environment, and medical costs are higher when compared to a tier II or tier III city.

Under zone-based pricing, health insurance providers categorize the country in A, B, and C zones depending on the average medical expenses. Therefore, cities with higher costs fall in the highest zone.

This customized pricing for health insurance plans ensures that you pay the appropriate premium for securing a higher sum insured (SI). As a result, if you reside in a less expensive zone, the premium is lower, which saves you a significant amount.

Factors that affect the premium

  1. Age and gender

The risk of ailments rises as you age, which means you have to pay a higher premium on the insurance plan. Additionally, women may need more medical attention as compared to men and may have to pay a higher premium.

  1. Policy type and sum insured (SI)

The premium for a comprehensive health insurance policy is more than a regular plan. Similarly, the higher the SI, the more is the premium. Family floater plans may be more reasonable in comparison to individualplans for each member.

  1. Pre-existing diseases (PEDs)

If you suffer from PEDs, the premium will be higher and the coverage is also not available during the waiting period. Additionally, if you have a family history of chronic conditions, you may have to pay more premiums.

  1. Lifestyle

In case you lead a sedentary lifestyle and smoke or consume alcohol, the risk rises for the insurer. Therefore, you will have to pay more for medical insurance.

Tips to choose the right insurance plan

Several insurers offer different types of health insurance like family floater insurance, individual insurance etc. and choosing the right one may be confusing. To select the right coverage, you need to:

  • Analyze your requirements based on your lifestyle, current health condition, and family history
  • Avail of an insurance plan that offers lifetime renewability
  • Check the hospital network
  • Evaluate the claim settlement ratio
  • Compare health insurance policies online

Insurers allow you to pay the premium in installments in case you are unable to make a yearly payment. The amount may marginally increase and this varies from one plan to another. However, the insurer will still process your claim and may deduct the balance premium from the settlement amount.

Buying mediclaim was never simpler and pocket-friendly. Get your coverage today.