One of the things 2020 has pushed us to realise is the importance of having a health insurance. Ever since the pandemic took over the world, the demand for health insurance has significantly risen. And we are more than happy to know that more and more people are being covered. To make you more aware about the health insurance premiums, here are six factors that could affect your premiums.

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These 6 factors could affect your Health Insurance Premiums


  1. Age: Your age plays a major role in determining your health insurance premium. Simple maths here- the older you are, the higher premium you pay simply because the older you are, the higher the probability of you falling ill. Insurance companies consider older people as high-risk customers. All insurance companies have an age-wise band which determines your health insurance premiums.
  2. Geographical Location: Your geographical location is also one of the important factors that determine your health insurance premium. For example, if you live a metropolitan city like Mumbai or Delhi, your premiums are likely to be higher in comparison to someone who lives in Uttar Pradesh. Simply because, treatment cost is higher in metropolitan cities than other states. Experts also suggest that insurance companies consider people living in such cities to be more prone to being exposed to health issues than others.

  3. Also Read: How to Lodge a Complaint Against Health Insurance Company?

  4. Body Mass Index (BMI): Your BMI pushes insurance companies to determine higher premiums, per se, if you are underweight or obese. Experts suggest that obese people or people with higher BMI are more prone to being vulnerable to underlying diseases such as cardiovascular problems or diabetes. Therefore, the premiums of health insurance for such individuals are higher than others falling in the normal BMI index.
  5. Sum Insured and Add-on Covers: Bear in mind, a direct impact on your health insurance premiums come from the sum insured and add-on covers you opt for. For example, if for a 10 lakh cover, you were paying 10,000 then for a 15 lakh cover, you will be paying 15,000. Again it’s simple maths, the more higher on the insurance cover bracket you go, the higher the premiums you pay for.
  6. Type Of Plan: The type of plan you choose, directly affects the amount of premium you pay. Usually, a family plan is cheaper than an individual policy simply because the entire family is set to cover under the same policy. Though, bare in mind that premium for a family health insurance plan is determined on the basis of the age of the oldest member in the family.
  7. Medical History: Medical history is also one of the important factors that would affect your premium of the policy. The premium could be higher for some individuals simply because there are vulnerable to health issues due to pre-existing problems. For example, if you have diabetes, then your premium will be higher than usual simply because you are more susceptible to developing health issues.

Finally, due to prevailing COVID 19 outbreaks, the need for prolonged hospitalization of almost more than 2 weeks and cost of PPE Kits pushes the claim costs. These factors are likely to influence the pricing of health insurance in the coming years for COVID as well as other Health Products.

These are a few factors that would help you understand the premium of your health insurance better.

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If you are facing problems related to your health insurance premiums, so Insurance Samadhan experts are here to help you. We already helped resolve over 13,500 customer grievance cases related to all types of Insurances, ULIPs and other financial products.

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Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

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