Health Insurance 405 views July 26, 2021

Individuals choose health insurance to protect their finances in case of a medical emergency. To get the coverage under a health insurance plan, you need to pay the premium at fixed intervals. The age of an individual is one of the crucial factors that affect the premium of his/her health insurance policy. Other factors are sum insured, pre-existing diseases, family history, choice of profession, location, body mass index (BMI), marital status, etc. Given the topic, we’ll focus on the age factor in this post.

Health Insurance

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Any individual going to purchase a health insurance policy should know that the premium towards the policy increases with his or her age. It means the older you are, the higher will be your premiums and vice versa. The reason behind this is quite simple: younger individuals have fewer chances of facing a medical emergency as compared to their older counterparts.

Another factor behind the increasing premium is the ever-rising medical costs due to advancements in technology that health insurance companies need to factor in when deciding the optimum premium amount for an individual.

On this page, we will discuss the factors because of which your health insurance premium increases with age. We will also give you an example so that you can understand better. Let’s start without any further ado.

Why Do Health Insurance Premiums Increase with Age?

‘What is the reason behind the increase of my health insurance premium with age?’ – This is one of the common questions that policyholders ask. Well, there is not one but several reasons that increase your premium as you age. We have discussed them below that you should check.

Risks of Life-threatening Diseases or Critical Illnesses

With a rise in an individual’s age, the chances of getting critical illnesses (Heart Attack, Cancer, Stroke, Kidney Failure, etc.) also start to rise. Insurers understand that the treatment of these life-threatening conditions can be costly and can go on for a longer period. This is why companies charge individuals a higher premium amount as they get older.

Increase in Health Risks With Increasing Age

As we mentioned earlier also, younger people face lesser health-related issues and usually don’t need frequent visits to the doctor as compared to senior citizens. Health insurance companies fully understand that as people age, health risks and chances of their hospitalization to get the treatment for illnesses, diseases or injuries also rise. The reason behind the increase in health insurance premiums with age is that insurers cover such increasing risks with age. That’s why younger individuals will need to pay a lower premium amount as compared to older individuals.

Medical Inflation

The quality of treatment has become a lot better due to constant advancements happening in medical technologies. Due to advancements and inflation, several things related to treatment (Doctor’s fees, medicines, diagnostic tests, etc.) also become costlier. So, an individual would need a higher sum insured to cover the medical expenses with an increase in his or her age. That’s why your health insurance premium increases with age.

Pre-existing Medical Conditions

If an individual is choosing a health insurance premium at an old age, he or she faces a higher chance of suffering from a pre-existing disease as compared to at a younger age. Insurers charge a higher premium amount for individuals with pre-existing conditions. So, if you choose a policy at a young age, you can get the same at a lower premium amount.

Effect of Age on Health Insurance Premiums

We are showing you an example of the Star Comprehensive Insurance Policy’s annual premium with which you can observe how premiums increase with age and sum insured. Under this plan, the sum insured ranges from INR 50,000 to 1 crore. Here, we are taking three sum insured options – INR 50,000, 75,000 and 1 lakh. To know more, check the below table.

Age Band (In Years)Annual Premium Amount (In INR)
For Sum Insured of INR 50,000For Sum Insured of INR 75,000For Sum Insured of INR 1,00,000
3 months - 357,0158,5409,725
36 - 458,07510,12511,775
46 - 5013,20016,86519,865
51 - 5516,10019,63522,395
56 - 6018,70022,88526,170
61 - 6525,75030,62534,295
66 - 7035,31540,83044,745
71 - 7541,41049,25555,170
More than 7554,23564,19071,625

You can see that individuals in higher age brackets need to pay a higher premium as compared to people falling in lower age brackets. That’s why it is advised to opt for a health insurance scheme at a younger age.

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