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Factors Affecting Premium of Critical Illness Insurance Policy

Published On Nov 09, 2021 12:00 PM By InsuranceDekho

The importance of health insurance is not hidden from anyone, especially during the ongoing COVID-19 pandemic times. There are several coverage benefits that a health insurance policy offers but what we often do not get enough of is critical illness insurance coverage, in most of them. This is why many people go for a separate critical illness insurance policy even after having a regular health insurance policy. It pays you a lump sum amount on the diagnosis of a critical illness. But before you buy a critical illness policy, you must know several factors that affect the premium of these plans, which is covered in this article. Read these factors below:

1. Age

Age is an essential factor to consider when buying a critical illness plan as it affects the premium. If you buy a critical illness insurance policy when young, then you will be charged a lesser premium and vice versa. This is because as you age, you become more prone to illnesses. Therefore, it is recommended to buy a critical illness insurance policy when you are in your 20s as it is neither too late, nor too early. Also, you will be charged a nominal premium for the same.  

2. Family Health History

If you have a history of critical illness running in your family, then there are chances that you will be affected by it too. This is why it may be difficult for you to get a critical illness insurance policy in this case. Even if an insurance company offers you a reliable critical illness policy, it may charge you a higher premium in comparison to others. 

Also Read: Top Health Insurance Riders

3. Pre-Existing Health Issues

Although several critical illness insurance plans cover you for pre-existing diseases, most of them come at a higher premium for that coverage. But this should not stop you from buying a suitable critical illness insurance policy as it is a much-needed cover for everyone. 

4. Body Mass Index (BMI)

Body Mass Index is another factor that affects the premium of your critical illness insurance policy. Higher Body Mass Index means that you are more prone to illnesses. Also, sometimes, you may require specialised care during procedures, which increases the liability of the insurance company. This is why you will be required to pay a higher premium in this case, and vice versa. 

5. Lifestyle Choices

It is obvious that an unhealthy lifestyle leads to health issues. So, if you have an unhealthy lifestyle such as a habit of alcohol consumption or smoking, then there are higher chances that you will be suffering from health issues in the future and hence you will be charged a higher premium for a critical illness policy in that case. Some other lifestyle choices that may increase your insurance premium may include hobbies of adventure sports such as sky diving, scuba diving, etc. 

Bottom Line

The aforementioned factors affect the premium of your critical illness policy. In some of these cases, you might be required to pay a higher premium to buy a critical illness policy, But that should not stop you from getting adequate coverage. This is because the treatment for critical illnesses, generally, is usually skyrocketing. And if you do not own adequate insurance cover for the same, then you might end up spending your life’s savings to pay off hospital bills. To save yourself from such a miserable situation, it is recommended to timely own a critical illness policy.  

Must Read: Why Should You Add Critical Illness Cover In Your Health Insurance Portfolio?

Disclaimer: 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.

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