Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin
  Hurry Up!
Save tax in 80D by purchasing a Health Insurance Today. View Plan

Factors Affecting Health Insurance Premium

Updated On Nov 08, 2023

Health insurance is an essential insurance plan that protects you and your loved ones against medical emergencies. It offers financial security by covering medical expenses, ensuring that individuals and families can access quality healthcare when needed. To enjoy health insurance coverage, you need to pay a certain amount which is called a health insurance premium, and that can vary significantly based on several factors. In this blog, we will delve into the factors that affect health insurance premiums.

Factors Affecting Health Insurance Premiums

Factors Affecting Health Insurance Premium

Listed below are some of the factors that affect health insurance premiums:

1. Age

One of the primary factors influencing health insurance premiums is age and gender. Generally, younger individuals tend to pay lower premiums than older individuals. This is because younger people are statistically less likely to have chronic health conditions or require extensive medical care. Thus, it is always a good idea to buy health insurance when you are young. 

2. Gender

Gender can also play a role in determining the health insurance premium. This is because women are more likely to get affected by health problems and also require maternity coverage. This is the reason why health insurance companies set a higher premium for women.

3. Medical History

Your health history and pre-existing conditions significantly impact your health insurance premiums. Individuals with a history of chronic illnesses or pre-existing conditions like diabetes or heart disease may have to pay higher premiums. Insurers assess the risk associated with providing coverage, and those with greater health risks often pay more.

4. Lifestyle Choices

Certain lifestyle choices, such as smoking and excessive alcohol consumption, can lead to higher health insurance premiums. Smoking, in particular, is associated with numerous health risks. Health insurers thus may charge smokers considerably more to compensate for these increased risks.

5. Geographical Location

The geographic location also plays a role in determining health insurance premiums. In areas with higher healthcare costs, premiums tend to be more expensive. Factors like the cost of living, availability of healthcare providers, and the overall health of the population in a given area can influence premium rates. On the other hand, if you live in an area that is more likely to get disturbed due to natural activities like floods, and earthquakes, then the health insurance premium will be higher.

6. Coverage Type

The type of health insurance coverage you choose significantly affects your premiums. Comprehensive plans with low deductibles and broad coverage options typically come with higher premiums. On the other hand, high-deductible plans with limited coverage may have lower premiums. Your coverage should thus align with your healthcare needs and budget.

7. Family Size

If you're purchasing health insurance for your family, the size of your family will impact your premiums. Family plans cover multiple individuals, so individuals buying such plans generally pay higher premiums compared to individuals or couples. However, it's important to note that family plans often offer more cost-effective coverage for households with multiple members.

8. Deductibles and Co-payments

The amount you are willing to pay out of pocket for medical expenses is called deductibles in health insurance. Health insurance plans with higher deductibles and co-payments typically have lower premiums because you assume more of the upfront costs. Conversely, plans with lower deductibles and co-payments have higher premiums but provide greater financial protection for unexpected medical expenses.

Importance of Buying Health Insurance

Now that we have explored the factors affecting health insurance premiums, let's discuss why it's crucial to invest in health insurance:

  • Health insurance provides a safety net for unexpected medical expenses. Without health insurance, a sudden illness or injury can lead to substantial medical bills that could jeopardise your financial stability. Health insurance helps mitigate these financial risks by covering a significant portion of your medical costs.
  • Having health insurance ensures that you can access quality healthcare when you need it. It ensures that you get adequate health insurance coverage at affordable premiums. Regular check-ups and early intervention can help detect and address health issues before they become more serious and expensive to treat.
  • Many health insurance plans offer coverage for preventive care services like vaccinations, screenings, and wellness check-ups at no additional cost. These services can help you maintain good health and catch potential health problems early, reducing the need for costly treatments down the road.
  • Health insurance provides peace of mind knowing that you and your loved ones are financially protected in case of a medical emergency. Having peace of mind can reduce stress and anxiety related to healthcare costs, allowing you to focus on your health and well-being.


In conclusion, health insurance premiums are influenced by a range of factors, including age, health history, lifestyle choices, location, coverage type, family size, deductibles, and co-payments. While the cost of health insurance can vary, the importance of having health insurance cannot be overstated. Therefore, investing in health insurance is a prudent decision that can have a positive impact on your life and the lives of your loved ones.

Also read: Informative Guide to Health Insurance For Women In India


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Health Insurance Coverage Calculator

Who do you want to insured ?

  • Individual
  • Couple
  • Family
  • Parents

Age of eldest insured member ?

Where do you live ?

Disclaimer : Actual Coverage might vary basis your location, age and number of members
Must BuyMust Buy

Why to Buy Health Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 75,000*
  • Claim support everyday 10AM-7PM
  • 50 Lacs+ happy customers