10 Factors That Affect Your Health Insurance Premium Costs

  When you search medical insurance online, you will be exposed to a number of insurance companies that offer different medical insurance at varied premium rates. While some may offer certain special features, some have similar features but with different prices.  Choosing a suitable medical insurance is largely dependent on its premium. Many of us who wish to invest in medical insurance are not aware of how the insurance companies decide the premium. And thus, due to lack of knowledge and awareness we often tend to buy a medical insurance with minimum premiums to suit our budget. But, good health is of utmost importance and in the light of the increasing medical and healthcare expenses, it is vital to buy a sufficient medical insurance cover. For this, you need to have complete insights of premium calculation and the working of an insurance company.  Various medical insurance companies have different values to examine the applicant’s risk profile. The data provided in your medical insurance proposal (application), and medical/health history, together make is called your risk profile. Key Factors that affect Premium Costs  Insurers offering medical insurance make use of historic information and do a comprehensive extensive compose different factors and design a particular criterion for risky policyholder profiles. The insurance companies evaluate your risk factor that is any attribute, characteristic or exposure of an individual that increases the likelihood of developing a disease or injury comprehensively. This data is the included in your medical insurance proposal and then as per the insurance company standards, they decision of offering you a medical insurance or not is taken.  In simple terms, when a medical insurance company assesses and evaluates your risk profile and decides to offer you a medical insurance, they calculate the premium rates on the basis of the data based received. After calculations based on the application, they provide a premium quote for the chosen medical insurance. Every insurance company has its own set of standards for premium calculation.  There are a number of risk factors that significant affect the premium prices in case of medical insurance. Some of the key factors are explained below in detail.  1)  Your Gender/Sex  Usually, women have to pay a higher medical premium as compared to the opposite sex. According to medical experts and specialists, there are three major reasons for this discrepancy.  - Women tend to visit and consult a doctor more often as compared to men - They are more likely to take prescriptions from doctors, almost on a regular basis - Women are more likely to be prone to acquire some chronic diseases than men do Also, if the insurer also provides maternity insurance, the delivery costs also add up to the overall premium rates.    2) Your Age Another factor that has a great impact on your medical insurance premium is your age. It is a thumb rule that premium rates are generally low for young people. It simply means, the younger you are the less you will have to pay as premiums. Thus, many experts always suggest investing in a suitable medical insurance at an early age.  Generally, a young individual is less likely to be diagnosed with sever medical conditions undergo treatments. The sole reason behind this is remains their strong immune system to combat various health issues. But, with age health issues increases and so does the risk of frequent medical treatments. Thus, they will be offered a medical insurance with a higher premium, so that the insurance company can compensate at the time of hospitalization without making any losses.  Though younger individuals are less probable to visit doctors, they are more likely to meet with accidents. The insurance company also keeps this factor in mind, when calculating the premium.  However, this does not mean that you should not invest in a medical insurance when you turn old. Though it may be a little costly, but it offers amazing benefits when need arises. It will protect you from different medical issues and take away the burden from paying heavy medical costs at once.  3) Any Pre-existing Diseases  Medical Insurance companies are well-aware that if the policyholder suffers from any pre-existing medical issues, then he/she can become a costly deal for them. While several insurance companies don’t provide any coverage for pre-existing medical ailments, only some of them do. But, if pre-existing diseases are included in the medical insurance, then the premium rates increases as the risk increase. In simple terms, if you have any history of health and medical issues, then it may result into attracting higher premiums.   As such, many insurance companies have certain specified restrictions for pre-existing medical conditions. Thus, it is important to read the inclusions, exclusions and terms & conditions of the medical insurance before buying it.  If you have a history of health issues, it could result in higher rates 4)  Your Family History and Medical Background  A person who wishes to get a medical insurance may also be judged for premium rates depending on his or her family’s medical history and medical background. Thus, if an insurance plan applicants family has a history of particular medical problems, then the premium rate offered to the applicant may be a little higher than the usual.  For instance, an applicant’s family has a history of blood pressure, then he/she may have to pay a higher premium as compared to an applicant with no family history of blood pressure.  5) Your Lifestyle    All the insurance providers have years of information that they evaluate and carefully analyze on a regular basis to find any connection between probable risks and a number of different key factors. It is a general assumption in the medical insurance industry that individuals who share these factors may be prone to similar risks in future. Keeping this in mind, they offer appropriate premium rates to such individuals.    6)  Your Profession  Individuals who are in contact with harmful chemicals, or who have a job that has a significantly higher possibility of injuries and accidents, have to pay a higher insurance premium as compared to others with less or no hazardous professions.  7) Your Area Code Generally people who live in the same area or locality have more or less similar risk profiles. This may be due to the same weather conditions, similar shared culture, the food options available, or others. But, you will definitely find some common points in their risk profiles.  Thus, if your people living in your locality have higher medical insurance premium rates, then it is most likely that you will also be charged in a similar manner by the insurance company.  8) Your Marital Status (Civil status)  It is assumed that married people have a longer life span as compared to their single counterparts. Also, married couples live a much healthier and happy life than those who haven’t tied the knot yet. Though these assumptions haven’t been proved yet, they are followed by many to make certain crucial decisions.  Insurance companies take into account your marital or civil status when calculating premium rates for a medical insurance. Thus, if you are married you are likely to get a medical insurance at a much affordable rate, and also men have greater benefits in this.  9) Previous Insurance    If you are someone who has not been insured previously and are investing in a medical insurance for the very first time, then it is possible that the insurer may offer you a insurance with a higher premium rate.    The reason behind such a decision by the medical insurance company is that they assume that a person, who has been previously uninsured, is looking for an opportunity to get a medical cover for various medical issues.    It is a general assumption by insurance companies that a previously uninsured person may want to consult a doctor, physiotherapist, dentist and other medical practitioners to start getting general healthcare checkups.    Additionally, if you have not undergone medical and health checkups on a regular basis, then it is possible that you might have missed or overlooked health issues for a long time. The insurance provider bears this mind and then decides on the premium rates to be offered to the individual.   10) Your health status  Today, most of the medical insurance companies have a certain set of rules to follow. Generally, applicants have to undergo a comprehensive medical examination and checkup to understand the applicant’s current health status. This includes tests like blood checkup, urine checkup, blood pressure, kidney-related tests, and heart-related tests. This may be a sign of future medical issues that may be faced by the applicant. Individuals who have good health and are fit (physically, mentally as well as emotionally) will usually be offered medical insurance with low premium rates. On the other hand, people who are so hale and hearty will have to pay higher premiums for availing a medical insurance.    Summing Up Though most of the above mentioned factors that affect your medical insurance premium may not be under your control, you still have chances to bring about a change. All you need to do is change a few bad habits such as smoking, drinking, and intake of tobacco. Also, follow a proper diet to be in good health If you take care of your health and try to control the risk factors stated above, you will be able to reduce the medical insurance premium rates significantly in the coming years.