Does Health Insurance Premium Increase with Age?

In order to protect yourself from the weight of medical expenses, getting health insurance is essential. Your health insurance premium changes as you grow older due to growing health risk concerns. To understand how age plays a key role in determining insurance premiums in India, we are going to take you through the relationship between age and insurance costs in this blog.

What are Health Insurance Premiums?

Payments that you make periodically to your particular insurance company for protection are called health insurance premiums. The type of coverage you choose, your lifestyle, age and state of health are certain factors upon which these premiums are calculated.

Determining Premiums: Age is a Key Factor

One of the main factors that affect health insurance premiums primarily is age. Your risk of a health issues arising increases as you grow older. When setting premium costs, insurance company take into consideration this increased risk. This is why age plays a key role:

• Increased Risk of Health Issues:

Age related diseases like hypertension, heart problems and diabetes are more common in older individuals. It leads to higher claim costs for the insurance companies as treatments for these kind of diseases are costly.

• Government Health Schemes:

Subsidized premiums are offered to senior citizens by some government health insurance schemes. However, certain limitations are implied on network hospitals and on coverage under these schemes.

Impact of Age on Premium Calculations

To calculate premiums based on various factors, including age, insurance companies utilize the actuarial models. Statistical probability of health insurance policy claims at different age groups are considered by these models. Your health insurance premiums may increase gradually to be in tune with the higher risk associated with the age group you are in as you age.

There are several other factors that influence your health insurance premium, leaving aside the most important factor that is age:

• Health Status:

You can be subjected higher premiums if there is a pre-existing medical condition or a family history of certain diseases.

• Lifestyle:

Having a habit of smoking, consuming alcohol, or a sedentary lifestyle can lead to an increase in health risks and which in turn leads to an increase in premiums.

• Sum Insured:

Having a high premium means that the sum insured is also high. An adequate sum insured should be chosen to make sure that the medical expenses are covered.

• Network Hospitals:

A greater flexibility in accessing healthcare is provided if an insurance plan with a wider network of hospitals is chosen but at the same time, the premiums for the same will be higher.

Steps to Manage Your Health Insurance Premium as You Age

• Lower premiums can be achieved for long term if you purchase health insurance at a young age.
• You can implement premium reduction tactics for health insurance by maintaining a healthy lifestyle, which can help lower your health risks.
• To make sure your health insurance policy is updated as per your health requirements, conduct frequent reviews.
• Subsidized premiums are offered to senior citizens under certain government health insurance schemes. Consider exploring those.

Conclusion

Despite being a significant factor, age is not the sole determinant of health insurance premiums. By understanding the various factors that impact your premium, you can make informed decisions when selecting a health insurance plan that provides adequate coverage at a reasonable price. Remember that prioritizing your health and leading a healthy lifestyle can help reduce the impact of aging on your insurance.

Are you curious about the benefits that health insurance could provide? To get more details, check out Elephant.in or contact 1800 266 9693 or email support@elephant.in!

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.| EL/BLOGS/24-25/20