Wednesday, 17 December 2014

Factors that Affect Your Health Insurance Premium



India’s per capita healthcare spending has increased at a compound annual growth rate of 10.3 percent 2008 through 2011, and is expected to reach Rs 5488.98 (USD88.7) by 2015, according to a 2014 report by KPMG. With the healthcare expenditure rising, there has been a significant increase in the number of people buying medical insurance in India. In order to capitalize on this favourable market, many healthcare insurance companies are offering competitive premiums. In general, an insurance company determines your premium after considering a number of factors, such as, your age, medical history, and lifestyle.

Physical and Medical Risk Factors

Here are 8 most important factors that your insurer may assess when determining your healthinsurance premium.
1.      Body Mass Index: In general, BMI is directly proportional to premium rates, meaning that people with a higher BMI will need to pay a higher premium, because they are susceptible to diseases, such as, diabetes, sleep apnea, and heart and joint problems.
2.      Tobacco Use: Insurance companies penalize applicants who use cigarettes or use tobacco rampantly by charging them higher premiums, as they are obviously more prone to cancer and lungs related ailments. They will also have a weaker immune system.
3.      Gender: Women tend to pay higher medical premiums than men as they are at higher risk of suffering from chronic diseases, undergoing surgeries, and getting into pregnancy related complications.
4.      Age: Premiums are usually lower for younger individuals. Young people will usually have fewer diagnosed and undiagnosed health conditions than older people will have.
5.      Pre-existing Medical Conditions:  If you are already suffering from a disease that may worsen your health conditions with time, you could be charged a higher healthcare insurance premium.
6.      Family History: For applicants who have a family history of certain medical conditions or ailments, the premiums may be higher. For instance, if some of your immediate family members had cancer, you may be charged a higher amount.
7.       Profession: If you work in an area exposed to hazardous chemicals or radiation, or have a job profile that involves high injury risks, you may need to shell out much higher insurance premiums.
8.      Marital Status: It is said that married couples live longer and are generally healthier than single people. Thus, married people, especially men, enjoy a better premium along with marital bliss.
Make sure you live a healthy lifestyle and include exercising and physical activities in your daily routine to improve your health conditions, as well as to get a better deal from your health insurance company.