Health insurance is typically designed to protect a person’s health, providing financial support for medical expenses ranging from routine checkups to more serious surgeries or hospital stays. People buy insurance to reduce the risk of paying higher fees out of their own pocket for this care, but in turn health insurance companies also reduce their risk of covering a person.
To calculate this risk of covering an individual, insurance companies look at the data stored to create a risk profile to decide whether they will provide coverage and at what cost. If the insurance company provides coverage, there are some obvious factors that companies take into account in deciding premium costs that typically include physical, medical, lifestyle, and personal risk factors.
Some physical and medical risk factors that play a role in health cover include:
- body mass
- tobacco use
- Pre-existing medical condition
- family history
Generally, people who have a high body mass index are required to bear a higher premium than those who are at a normal level. Obesity can lead to diseases such as diabetes, sleep apnea, and heart and joint problems. Insurance companies cannot account for this and may charge a person more for their health insurance due to the increased risk of these diseases and medical problems.
The particular gender and age of the customer also play an important role. Women usually pay higher medical premiums than men because they usually have more reason to go to the doctor regularly, and have a tendency to take more prescription medications and risk some chronic diseases Is more. Younger individuals have lower premiums because they do not need to visit a doctor regularly, have a lower diagnosis status and are less likely to develop health problems.
Medical conditions that already exist and family history may also play a role in health insurance premium costs. When the insurance company looks at a person’s pre-existing condition on risk factors, they know that it can be costly for them. The insurance company may not cover the condition, but because the person may have an increased likelihood of additional issues related to the condition, the insurance company may increase the premium cost. Those who have a family history of cancer or other hereditary diseases will likely have premium increases.
Other factors are generally considered to be lifestyles that affect insurance costs. Everything a customer does for a living person can affect the cover. For example, if you work in a factory or laboratory where you are exposed to hazardous chemicals or there is an increased risk of injury, your health insurance will be more expensive than your office job, which is a limited risk to your health is.
Insurance companies pay attention to data on health trends in specific areas, which means that where you live can affect the cost of your cover. If their data shows that people in your area are healthier than others, then your health cover costs may be lower than if you lived in an area that was seen as a high health risk. .
If you are purchasing health insurance coverage for the first time and have previously been uninsured, your rates are likely to be higher. Research shows that people who are married live longer and are healthier people who are not married, which is why married couples see their premium fall.
These are some of the common factors that can affect your health insurance premium. While sitting with your local independent health insurance agent, one should ask about these factors and how they may affect various coverage options. The health insurance policy of HDFC ERGO assures greater benefits at affordable prices.