Health insurance premiums depend on several factors such as the age of policyholders, their medical history, the type of plan chosen, etc. Let's see how these impact the premium amount:
Age -
The age of the policyholder determines greatly the premium he/she would pay. In case you buy a policy at a young age, the premium will be lower compared to when you do so later. Also, the premium of health insurance changes depending on the year slab you move on to. Typically, there is a slab of 5 years based on which the premium varies. For example, you are aged 32 years and are in the slab of 30-35 years. The premium now is INR 8000 ( assumed) a year. Once you attain 36 years and enter into the next slab of 5 years, the premium could notch up to more than INR 10,000 a year.
Type of Plan Chosen -
The premium also depends on the type of plan you choose. Policyholders' age matters when it comes to deciding the premium amount. So if it is a family floater plan covering multiple members, the health insurance company will determine the premium based on the age of the eldest member.
Sum Insured -
The Sum Insured amount also dictates the calculation of the premium amount. The greater the sum insured, the higher the premium outgo and vice versa.
Medical History -
It plays a vital role not only in deciding the premium amount but also in the approval of health insurance applications. If the policyholder does not have any health complications, not only will the premium amount be lower but also the application will get approved quickly. Whereas, if you have health issues, the underwriters of the health insurance company will examine them carefully before approving your case. In case they approve your case, they will compute your premium based on your health conditions. An increased premium from the standard rate is a formality. But the rise in the premium amount depends on the severity of conditions, the sum insured, the number of members covered in a policy, etc.
Can You Get Discounts on Health Insurance Premiums?
Yes, discounts are available on health insurance premiums if you pay the premium for 2 years or more in advance. Discounts can also be available on choosing a family floater plan or a multi-year plan. The discount rate will, however, vary from one plan to another.
Health Insurance Premium Calculator and Its Benefits
The premium calculator, which is available online for use, shows the estimated premium for the health insurance plan you wish to buy. As expressed above, the premium is dependent on factors such as the age of the policyholder, the type of plan he/she chooses, his/her existing health conditions, etc. As soon as you enter the same in the calculator, the premium payable will flash on your screen. The calculator provides reliable results quickly based on the details mentioned above.
Tax Benefits on Health Insurance
Besides the financial cover against health emergencies, health insurance also offers tax benefits up to INR 1,00,000 on premiums paid in a financial year, under Section 80D of the Income Tax Act. Tax deductions of up to INR 5,000 apply to preventive health check-ups.
Inclusions at a Glance
Health insurance plans cover numerous diseases and conditions up to the sum insured you choose at the time of policy inception. Let's check the coverage of these plans below.
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In-Patient Hospitalization
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Pre and Post-hospitalization
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Day Care Procedures
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Organ Donor Expenses
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Ambulance Fee
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Daily Hospital Cash
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Fees of Doctors, Surgeons
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Ayush Treatment
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Domiciliary Hospitalization
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OPD Treatment
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Cataract Surgery
Exclusions to Keep in Mind
Knowing exclusions are as important as being aware of inclusions as it could help avoid a potential claim rejection from the insurer. Let's check the exclusion list below.
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Sex Change
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Hormone Replacement
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Dental Surgery
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Non-allopathic Treatment
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Injuries Caused by war, attempt to suicide, terrorism, nuclear activity
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Cosmetic Surgery unless it is necessary for the survival of the insured
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Terminal Illness
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Treatment carried out abroad
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Treatment based on the advice of an under-qualified medical practitioner
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HIV AIDs and other sexually transmitted diseases