New Delhi, September 28. Buying insurance is a must as it ensures that you are financially secure to face any kind of health problem in life. This is the reason why insurance is a very important part of financial planning. Insurance company offers insurance policies to cover health, travel, motor vehicle and home. In this, the premium you pay for a health insurance policy is determined by many factors. These include factors such as age, total coverage (sum assured), your medical history, gender, lifestyle and job. For example, a person suffering from a disease will have to pay a higher premium than those who are not taking any medicine and are not suffering from any disease. Here we will share with you the details of other factors on the basis of which health insurance premium is decided.
age is most important One of the most important factors for calculating the insurance premium is the age of the policyholder. If you are young, you are considered to be at low risk of health. In this way the premium on the policy is less at a younger age. Secondly, youth get longer policy coverage and pay premiums. This gives more income to the insurance company. This is also one of the reasons for the cheap premium for young customers.
attention is paid to your habits People who frequently smoke and drink alcohol are more likely to get a life-threatening disease. If you fall in this category then you will have to pay higher premium. It can be up to 50 percent more than normal.
gender is also important Premiums in the insurance industry also vary by gender. A female policyholder will have to pay lower premiums as compared to a male despite having a similar profile. This is because men are considered to be at higher risk and have a shorter life expectancy
Policy term and your job The longer the term of the policy, the lower will be the premium. In longer term policies, the insurance company gets premium for a longer period and hence they charge less for policies with longer coverage. The second is your work. If you work in a high-risk industry such as construction, mining or shipping, you will be charged a higher premium. The premium will be lower for those who work in the office and the risk of getting into an accident at their workplace is less.
premium payment term Those who pay premium annually save some money as compared to those who pay half-yearly, quarterly or monthly premiums. In case of annual payments, insurers save on regular administrative costs. Hence it is made available at a cheaper rate as compared to quarterly and monthly installments.
family health history Some diseases, such as diabetes, are known to be hereditary. Hence people who have a family history of such diseases may be asked to pay higher premiums than others.
