How To Calculate Health Insurance Premium Online?
Updated On Sep 06, 2021
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Before investing in a health insurance policy you have to consider several things like comparing the policies, researching about the exclusive plans, analyzing your financial requirements, keeping track of the medical records of the members getting insured under the health insurance cover, etc. After carefully considering these points you narrow down your options until you find a suitable health insurance plan. With the advancements in technology, now you can compare, purchase, and renew your plan online on the internet. The health insurance providers have also rolled out other facilities like health insurance premium calculators for the benefit of the customers.
What Is A Health Insurance Premium Calculator?
A health insurance premium calculator is an online tool which helps the customers to calculate the premiums of their desired health insurance policies. This tool is easy to access and provides instant quotations of the various plans available. The premium calculation of this tool is more precise and reliable than the traditional paper and pen method. Health insurance premium is an amount of money that the customer has to pay periodically to the insurer to avail the benefits of the purchased health insurance policy. Calculation of premium using the online premium calculator gives the policyholders an idea of their future expenses, and then accordingly they can manage their finances.
How To Use A Health Insurance Premium Calculator?
You can access a health insurance premium calculator either on the official website of your desired health insurance provider or on regular websites that provide information regarding different health insurance plans that are available in the insurance market. To get your premium rate for a policy you need to enter certain details like your age, city, email ID, mobile number, type of plan, sum assured, number of members included under the cover, etc., then based on the information entered the premium rate is displayed on the webpage. To alter the premium amount you can change the details according to your needs, which will help you customize the plan for yourself and your loved ones.
Key Factors Considered To Determine The Health Insurance Premium
Following is the list of some important factors that are used to determine the premium rate of a health insurance policy:
The age of the policyholder determines the premium rate as the premium is higher for old people. Senior citizens are at a larger risk of contracting life-threatening diseases and therefore, their premium is higher.
2. Medical History
Depending on the medical history of the individual, the premium of the health insurance cover is determined. The premium for people suffering from pre-existing diseases is higher than usual as their cost of treatment is higher.
3. Geographic Location
The premium rates differ according to the geographic locations of the policyholders. The person living in a metro city has to pay higher premiums than the person living in a normal city as the cost of treatment in metro cities is higher when compared to the other cities.
4. Plan Chosen
The cost of premiums differ according to the plans. The premium cost for plans like individual plans, maternity benefit covers, critical illness plans, family floater plans, etc. are different as the coverage of these plans differ. It also depends on the additional covers included with the base health insurance cover.
Your lifestyle and usual habits also help in determining the premium rates. People who smoke regularly have to pay a higher premium as they are at a larger risk of contracting life-threatening diseases like lung cancer, bronchitis, etc.
6. Policy Terms
A policy bought for 1 year costs lower than a policy bought for a period of 2 years. However, a long term policy comes with discounts for the customers.
After having compared the possible health insurance policies, you must check for the premium rates using the online health insurance premium calculator as it will help you determine your future expenses.
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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.