November 28, 2023

The World's Local Health

Common Factors Affecting Health Insurance Premiums

2 min read
Common Factors Affecting Health Insurance Premiums

Health insurances have become the new norm in the society. As the medical expenses sky-rocket every year, it has become extremely common for people to opt for health insurance plans for themselves and their families.

What is Health Insurance?

A health insurance is one of the types of insurance which covers the medical expenses due to unforeseen health conditions of the insured. The sum insured depends on the amount of premium paid by the policyholder. At present, most companies provide online health insurance premium calculators where individuals can check the premium amount that needs to be paid to get the required sum insured.

What are the Common Factors Affecting Health Insurance Premiums?

Health insurance premiums are dependent on a variety of factors. Some of the most important and common factors on which the premium of health insurance depends are:

●  Age of the Insured

The premium of a health insurance increases with the increase in the age of the individual since they are less prone to diseases and are less likely to  have health problems. Thus, younger policy holders have lower premiums compared to older individuals.

● Pre-existing Medical Conditions

Pre-existing medical conditions can affect the premium too. Certain companies can even exclude the coverage of pre-existing medical conditions in the policy. Thus, always check for the terms and conditions of the insurance company beforehand.

● Personal Habits

Personal habits like smoking, chewing tobacco, drugs, etc. can drastically affect the premium of the insurance. Some companies even refuse to insure an individual with the aforementioned habits as they are more prone to getting critical diseases like cancer, etc.


The BMI or the Body Mass Index is the ratio between the height and the weight of the individuals. The BMI is also one of the factors that affect the premium of a health insurance plan. In general, individuals with higher BMI have more premium when compared to the individuals with a balanced or normal BMI.

● Gender

According to experts, women are more likely to get diseases, visit doctors, prone to chronic diseases and take prescriptions. Thus, the health insurance premium for a woman is generally higher when compared to a man.

●  Work Environments & Profession

People who work in hazardous environments (polluted or risky) or whose profession requires them to closely work with dangerous chemicals, radiations, etc. have to pay more premium since they are more prone to critical illnesses.

● Marital Status & 1st Time Policy Buyers

In general, married people have to pay lesser premiums. Also, people who are taking insurance for the 1st time pay a higher premium compared to the individuals who had been previously insured.

These were a few factors that generally affect health insurance. Before buying any insurance, it is important to check the policies, reviews and the claim settlement ratios of the insurance company. For instance, Care Insurance had a claim settlement ratio of almost 93% which means 93% of the claims were settled that year. Thus, higher the claim settlement ratio, the better the policy will be.