Does Health Insurance Premium Increase Every Year
Updated On Dec 26, 2022
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With every new season around the corner, we refurbish our wardrobes with new and trendy clothes. Isn’t it? Similarly to this, health insurance premiums also increase every year due to various factors, especially inflation in the healthcare sector. The premium is the amount paid by the policyholder to the insurance company when the plans are renewed to keep their policy active. Read on to find out more about the reasons why policy premiums change every year.
Factors That Affect Insurance Premiums Every Year
Listed below are some of the reasons for the increase in insurance premiums every year at the time of renewals.
Inflation In Healthcare Facilities:
Every year, the healthcare sector experiences astonishing inflation, which has a direct impact on the cost of your health insurance. Although there may be other factors that contributed to the increase in health insurance premiums, you have no control over this. Therefore, a rise in healthcare costs will lead to an increase in your health insurance premiums.
Some insurance companies may increase the premium amount based on your claim history. So, it is recommended to check the terms and conditions mentioned in the policy document carefully at the time of purchase.
The age of the insured is another vital factor that affects the health insurance premium. As a result, the insurance premium will increase as you grow older, especially after 60 years of age.
Given the rate of inflation, coverage for many healthcare facilities has become a requirement. As a result, when you customize your insurance plans at the time of renewal, the premiums for health insurance policies may change.
The health and wellness of the policyholder in the past year is an important factor taken into consideration by the insurance companies. If the individual has been diagnosed with a serious medical condition, your health insurance premium may rise as well.
How Can You Reduce Health Insurance Premiums?
Though there is no direct way to reduce your health insurance premiums, the alternatives listed below can help.
- Check the insurance company that provide bonus and discounts.
- Transfer your policy to the insurance company that doesn’t increase the premium depending on the claim history.
- Customise your insurance policy depending on your needs.
- Maintain a healthy lifestyle and avoid coming in contact with diseases to ensure that your premium amount doesn’t get increased every year.
Things To Consider While Renewing a Health Insurance Policy
A health insurance policy is an important tool that safeguards you and your loved ones financially against critical illnesses. Therefore, it is necessary to renew a health plan timely, either with the same insurer or by transferring your existing policy to some other insurance company. Listed below are some points that you should take into account while renewing your health policy.
- Your medical needs should be met by your insurance coverage. If the coverage is inadequate or excessive for your medical requirements, you should think about changing your health insurance policy.
- You can buy family floater plans to cover your spouse and children under the same health insurance policy.
- Go through all the add-ons of your policy before renewing your plan.
- Make sure that you are satisfied with your present insurance company and the policy. If you are not happy from your current insurance policy, then you can transfer your health plan.
- Customize your health insurance policy by adding and removing add-ons in your standard health plan.
The health insurance premium is increased every year due to the various factors including inflation, age, claim history, and others. Though you cannot control the premium from increasing, but you can take some cautions in account while purchasing and renewing your health insurance policies.