Health Insurance is an important investment given the rising medical costs. Various insurers offer many types of health insurance plans differing in the scope of coverage, premium, and other features. Apart from the benefits, the customers are most interested in the premium amounts of the health insurance plans. This is obvious because it is essential to know the amount of money you need to spend periodically to keep your health insurance policy active.
A customer can either choose to pay whatever premium amount the insurance company fixes as per the health insurance plan or use a health insurance premium calculator to understand the premium amount beforehand to decide whether the amount is acceptable high given the benefits.
What is a health insurance premium calculator?
A health insurance premium calculator is an online tool available on the website of any reputed health insurance company. The tool estimates the premium to be paid as per the health insurance plan selected by the customer and many other factors.
Calculating insurance premiums manually is a highly complex task. This is because insurance policies are highly complex, and there is generally a high volume of insurance jargon and hidden terms which people do not understand. Online health insurance premium calculator factors in all the essential elements to give an accurate estimate of the payable premium. The customer needs to enter the required details into the calculator.
How is health insurance premium calculated?
Most health insurance providers offer health insurance premium calculators in India. In order to calculate the premium estimate, the calculator takes the following factors into account:
The age of the person to be insured is an important factor in calculating the premium. The premium amount increases with advancement in age. This is because the tendency to develop serious illnesses such as cardiac problems, kidney disorders, bone disorders, and others is more at advanced ages than younger ages. This is also why premiums of senior citizen health insurance plans are higher than standard health insurance for younger people.
An insurer offers numerous health insurance plans at any point in time. The type of plan plays a major role in determining the premium amount. The sum insured is a major factor in terms of the premium. The risk involved is another important factor. The greater the number of risks covered by the plan, the more is the premium amount. Add-ons and extra benefits also increase the premium.
The health insurance policy can last for 1 year or even remain active for 2/3 years. The premiums of annual health insurance policies are lesser than long-term health insurance policies. However, most insurance providers give discounts on long-term health insurance plans. The premium calculator takes the discounted rate into account and is given by the insurer.
Insurers may or may not conduct a medical screening of their customers to determine their medical histories. However, while calculating the premium, various factors such as the proposer’s current medical condition, the proposer’s health background and his/her family, and lifestyle-related habits such as drinking or smoking are taken into consideration by the health insurance premium calculator in India. People with issues in medical history and those who regularly smoke and drink are usually charged higher premiums.
Marketing and Service Expenses
The expenses related to marketing and services such as designing and marketing the health insurance policy, commission, and brokerage, and advertisement and brochure costs are all taken into account automatically by the health insurance premium calculator. The insurance company recovers such overhead costs from the premiums paid by the customers.
Benefits of Using a Health Insurance Premium Calculator
Helps Find the Best Plan
The health insurance premium calculator helps determine the best health insurance plan per your specific requirements and budget. The calculator gives you the freedom to adjust various parameters until you reach your desired outcome. By comparing the parameters of various health insurance plans, you can reach the optimum combination of the sum insured, coverage benefits, and the premium amount, which satisfies your needs without being hard on your pockets.
Multiple health insurance plans lead to confusion. A health insurance premium calculator helps select the best health insurance plan in your budget and fulfills your medical insurance needs. Run the various plans through the calculator to determine the best plan.
Better Premium Estimation
Health insurance premium calculator in India enables financial planning. By clearly understanding the estimate of the premium to be paid for a particular health insurance policy, you can plan your finances accordingly before purchasing the policy.
Any particular insurance company’s health insurance premium calculator lets you know about the costs of add-ons and optional benefits provided by that company for its health insurance plans. You also get a clear idea about the discounts, if any, offered by the insurer. Thus, depending upon your budget and needs, you can include or exclude add-ons and optional benefits to calculate the premium amount.
Eliminates Complex Calculations
Many parameters are taken into account for calculating health insurance premiums. Hence, the calculation is complex. Online calculators eliminate the need for customers to calculate the premium amounts all by themselves. The calculator completes the calculation and displays the results within a few seconds. All you need to do is feed the data.
The health insurance premium calculator is free and can be used for as many calculations as you want without spending a penny. Since it is an online tool, all you need to do is visit the insurance provider’s website and access its premium calculator. There is no need to visit an agent or office of the insurer because all you need is a smartphone/PC/laptop with an internet connection.
It is better to shortlist 4 to 5 health insurance providers and compare similar plans by using the premium calculators available on their websites.
If you are still confused after doing your search, reach out to Vital.