Health Insurance Premium Calculator: Need & Factors Involved

Updated: 31-08-2023 06:55:56 AM

Being healthy should not be an option, instead, it should be our second nature. In this world of uncertainties, it makes sense to  purchase a health insurance as per the requirement. And before buying an insurance, it is important to know the premium one will have to pay. This can be done by using a health insurance premium calculator.

A health insurance premium calculator is a tool that helps an individual to calculate premium of various health insurance plans. It also helps compare different health insurance companies in India. Also, you can choose the best health insurance plan at an affordable premium payment.

Need to Calculate Health Insurance Premium

Before taking any decision to avail the health insurance plan, individuals need to understand  their financial position. Calculating the health insurance premium is a vital task before buy the insurance. With the help of health insurance premium calculator, you can easily plan your finances in advance. Also, you can understand which health insurance to buy and whether it is affordable.

Factors Affecting Health Insurance Premium

Insurance companies have their own terms and conditions which ultimately affect the amount of premium to be paid. There are a number of factors that help determine the amount of premium. They are:

1. Marketing and Services Expense: Expenses related to marketing and management costs are recovered by the insured from the premium. These expenses include- marketing cost, commission, brokerage, advertisement, brochure and various operational expenses.
2. Savings and Investments: Many of the insurance companies are highly engaged with investing in public sector companies instruments. These investments are only made under the guidelines issued by the IRDA to avoid any complexities. These insurance companies avoid investing in private company instruments because of high risk and exposure. In this case, capitalisation returns affect the premium.
3. Underwriting of Policy: Insurance companies offer several types of insurance, namely health insurance, family floater insurance, individual health insurance and others. These companies play a vital role in underwriting the mediclaim policies in such a way that a balance is maintained between all of them at same time. Under this policy, insurance companies look after the possible risk and analyse them accordingly with more than one perspective to avoid the factors that could cause trouble.
4. Age: Policy premiums do get affected by age. Thus, it is suggested, the younger you avail the insurance, the less amount of premium you pay.
5. Family Medical History: The premium amount goes up for individuals suffering from  heart disease, cancer, diabetes, critical illness and others.

Benefits of Health Insurance Premium Calculator

Availing health insurance plan is easy but to know the entire feature of the plan requires reading out the policy document carefully because each company has its own terms and conditions. Health Insurance premium calculator comes with various benefits which enables the individual to carefully look at the insurance plans as well as the insurance companies for availing the premium amount at an affordable price.

Mentioned below are the benefits of the health insurance premium calculator:

1. It gives an idea of the estimated premium amount in advance
2. Using health insurance premium calculator, it would be easier to select the best plan which goes handy with the pockets
3. You can exclude or include the add-on coverage through riders provided by the insurance companies
4. Decision making becomes easy as it  for when you actually want to proceed with the plan
5. Health Insurance calculator helps in planning expected and unexpected expenses systematically

With health insurance premium calculator, you can also find applicable additional rider provided on health insurance policy suitable for you. You can also compare different health insurance plans as per your requirement and thereby can take decision accordingly.