Health Insurance Premium Calculator Online
Health Insurance Premium Calculator
Health insurance is a vital asset in today’s world, given rising medical costs. The premium amounts in a health insurance policy play a significant role in determining its overall affordability. Premium rates are the first thing people want to know about a health policy. Hence its calculation is becoming increasingly important.
This is where health insurance premium calculators can be useful. It is a handy tool that simplifies complex insurance calculations allowing you to determine your yearly insurance premium and plan your purchase effectively.
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Health Insurance Calculator Overview
Health insurance policies often have hidden costs in their terms and conditions; trying to understand them can be tough. So in most cases, you may have to pay more than you initially expected if you purchase a policy without fully understanding its fine print.
To save you from paying any of these hidden costs, medical insurance calculators come into the picture. Most online insurance providers offer these on their official websites to ensure that clients make informed decisions before purchasing a health insurance policy.
Here we will break down what a health insurance calculator is, its importance, how it is used to calculate health insurance premiums and more.
What Is A Health Insurance Calculator?
A health insurance premium calculator is a free online tool offered by insurance providers which considers several factors like your age, location, coverage amount and the number of people to be insured under the plan to give an estimated amount of the health policy’s premium.
It can also be used to compare online health insurance policies with each other to determine what plans will give the best value for money. Hence, they can be beneficial during the decision-making process before purchasing a health policy.
How To Use A Health Insurance Premium Calculator?
A mediclaim insurance premium calculator can be used to determine your health insurance premium in a matter of minutes. It is a useful tool when buying health insurance online as it gives you an accurate estimate of your premium payable amounts.
You simply need to provide it with a few basic details, and it will do the rest. For example, a 5 lakh health insurance premium calculator can be used as follows:
Visit the insurance provider’s official website.
Visit the landing page for their health insurance premium calculator.
Enter your details, such as age, PIN code/location, etc.
Select the number of people you would like to insure under the plan.
In the case of health insurance plans for families, the premium calculator will request the number of family members you wish to insure.
Select your desired coverage, add-ons (if any) and other requested information.
After entering all the requested details, click ‘Calculate’.
According to your prior input, the health insurance calculator will display the premium amounts for plans the insurer offers.
The above-mentioned process will be the same for most health insurance calculators, with slight variations depending on the insurer and the types of health insurance policies you wish to buy.
Required Information For The Premium Calculation
Different health insurance companies will have their own formula for their premium calculations. For example, at Tata AIG, we consider the following:
Your age and location/PIN code.
The number of people to be insured under the policy, in case of a family health insurance premium calculator.
Policy type and policy tenure.
The desired sum insured amount.
Your medical history for pre-existing illnesses or critical illnesses insurance.
Lifestyle habits or choices.
No claim bonus or cumulative bonus.
Add-on covers, if any.
How Is Health Insurance Premium Determined?
- Age
Your age plays a key role in determining your health insurance premiums. For example, the premiums for people at a younger age are often lower than those for older adults. This is because your health risks increase as you age, making you more prone to filing claims.
As a result, health insurance providers will offer different premium amounts depending on the age bracket you fall under and medical insurance calculators will quote different premiums based on the input age.
- Gender
Women are likely to pay lower premiums on health insurance plans as they often have higher life expectancies than men. Moreover, men and women have unique medical needs.
For example, women may look for maternity covers or may frequent more doctor visits during pregnancy, whereas men are likely to suffer from stress-related conditions and are predisposed to falling ill in their later years.
However, it should be noted that while there is a difference in premium rates, the differences are not significant enough to warrant a drastic increase or decrease in premium amounts.
To see this difference in effect, you can try entering a different gender into the health policy premium calculator when using the tool.
- Type of Health Insurance Policy
Your premium amount will vary depending on the type of health insurance policy you choose. So the premium amounts between individual plans, family plans, and top-up plans can have varying sum insured brackets.
For example, the premium amount between our Criti MediCare, MediCare Premium and MediCare Plus variants vary as one is a critical illness insurance, the second a comprehensive health insurance policy and the third a top-up plan.
Overall the type of health insurance plan you choose matters the most when checking for estimated amounts on health premium calculators.
- Add-ons and Riders
The add-ons or rider plans you choose to include in your policy will also affect your overall premium amount as they require additional premium payments to provide increased coverage. So if you have opted for an add-on or rider, the mediclaim insurance premium calculator will show you a higher premium estimate for your chosen plan.
- Medical History
Your medical history also determines your premium payouts. It would include details such as your current health condition, family health background, lifestyle habits like smoking, alcohol consumption, pre-existing conditions, etc. For example, anyone with a pre-existing condition is more likely to file a claim than a healthy individual. So a pre-policy medical screening is often required for people with pre-existing conditions to determine their current health status.
- Policy Duration
Policy tenures also play a role in determining health insurance premiums. Short-term policies that last a year will usually have higher premiums. In contrast, long-term policies with 2 to 3-year tenures will have lower premiums. Moreover, insurance companies also offer discounts on long-term policies.
- Cumulative Bonus
No claim bonuses or cumulative bonuses are a special benefit offered to policyholders. They come into effect on policy renewals when you do not file any claims during the previous policy year.
In simple terms, this benefit increases your sum insured amount by a certain percentage on policy renewals, so you get more coverage in the new policy year without paying an additional premium.
How To Reduce Health Insurance Premiums?
- Co-Payments
Co-payment options in health insurance policies allow you to pay a portion of the medical bill while your insurer pays the rest. This is a good way to reduce premium amounts, as co-pay health insurance policies have lower premiums since the insurer does not bear the full cost of medical expenses.
- Choosing A Higher Deductible
Similar to co-pays, deductibles are also a good way to reduce premiums on health insurance policies. This is a mandatory payment in some health insurance policies, while in others, it can be opted for.
Paying a higher deductible on your claim amounts can help reduce your premium; however, you should only opt to do this if you are confident in your ability to cover your medical costs.
- Opting for Family Health Insurance Policies and Multi-Year Medical Policies
Family floater plans have lower premiums and are generally more affordable when compared to individual plans. These plans base their premiums on the age of the eldest family member included under the family health insurance plan, and all insured members share the sum insured.
Moreover, opting for longer policy tenures reduces your premiums. At Tata AIG, we also offer discounts on our family health insurance plans based on the number of people insured and the policy tenure, with additional discounts on long-term health insurance policies.
- Top-Up Health Plans
Top-up plans are a cost-effective way to increase your health insurance coverage. They are more economic options when compared to opting for high coverage plans, as they usually come with higher premiums. A top-up plan kicks in when you have exhausted your base coverage amount during a claim.
Significant Benefits Of Health Insurance Premium Calculators
- Supports Financial Planning: Medical insurance calculators help you plan your finances by giving you a tentative idea of health insurance premiums in advance. You can manage your expenses accordingly and ensure you do not miss out on premium payments.
- Saves Time and Resources: Online mediclaim insurance premium calculators are easy and free to use. Using these helps save time and energy, which would otherwise be consumed in understanding complex policy wordings.
- Promotes Ease of Purchase and Comparison: Health insurance premium calculators facilitate easy purchases by giving you an estimate of the costs involved, allowing you to compare different plans, riders, unique offerings, etc., and ultimately, make an informed decision.
Mediclaim premium calculators also allow you to add and remove policy candidates, change sum insured coverage, modify plan benefits, etc., allowing you to customise your plan to assess which combination will give you the best value for your money.
- Eliminate Errors in the Calculation:x Online health insurance premium calculators eliminate the risk of error when calculating premiums, provided you enter your details correctly. They help you determine your premium-paying liabilities and ensure you pay the right amount.
In most cases, people overlook the policy terms and complex premium calculations, which causes them to pay more than necessary. With a mediclaim policy calculator, that risk is eliminated.
Additional Factors Affecting Health Insurance Policy Premiums
Apart from factors like age, gender, lifestyle habits, etc., that affect policy premiums shown on mediclaim insurance premium calculators, additional factors can also influence your health insurance premiums. Even though these factors do not directly affect the health insurance premium amount, it is important to understand them to get a comprehensive view of the premium charging process.
- Mortality Rate
The underlying mortality rate also influences the mediclaim insurance premiums. Mortality rate here refers to the frequency of death (and the risk of diseases) in a specific population. This means that the higher the mortality rate, the higher the risk for the insurer.
On death, the insurance company has to bear a specific cost (a sum payable to the insured).
Typically, the mortality rate varies with the age group and is high in older policyholders. Hence, the insurance premiums for older customers are comparatively higher than for younger ones. This is because elder policyholders are more prone to diseases and critical ailments like diabetes, high blood pressure, heart disease, stroke, etc.
Moreover, lifestyle habits and present health conditions also influence the mortality rate. Smokers have a high mortality rate. Hence, the insurer charges a higher premium for smokers than non-smokers.
- Personal history
In urban India, the lifestyle choices you make significantly affect your health. Though your age and policy type majorly impact your health insurance policy premiums, your personal history, lifestyle choices, hobbies, etc., can affect how much you pay. Moreover, your profession also influences your health insurance premiums.
If you have pre-existing diseases, such as a history of medical ailments, heart issues, diabetes, etc., your premiums will likely be higher. Additionally, if you smoke or consume alcohol regularly, you will pay higher premiums. Lastly, if you work in an unsafe environment or have a stressful job, the health insurance premiums can be impacted because it increases your health risks.
- Savings and Investments
Insurance companies invest money in public sector market instruments due to low risk. These investments are made under the guidelines of the IRDA (Insurance Regulatory Development Authority of India) to avoid any compliance issues. The premiums you pay for your health insurance policies are, to an extent, determined by the returns from such capitalisations.
- Marketing and Services Expenses
An insurer invests a significant amount in providing a health insurance policy. Some of these marketing and servicing costs include designing the medical insurance policy, marketing, brokerage and commissions of insurance agents, advertisement, brochure printing, operational expenses, etc. A portion of these expenses is recovered in the form of premiums.
- Policy Underwriting
Policy underwriting refers to a process through which the insurer decides how risky it is to issue a health insurance policy to a specific individual. The underwriting process considers several factors that could cause trouble and assess how likely it is that the insured will make a costly claim. This helps the insurance company modify the policy premiums accordingly to ensure there is minimum loss.
When you use a mediclaim insurance premium calculator, you get a near-to-accurate idea of the premiums for your health insurance policy. You can use the results from the health insurance premium calculator and then check your policy documents to know the total premiums due for your policy, which will be inclusive of all the costs. In case of any queries, you can also contact us through WhatsApp number, toll-free number or email.
Top Reasons Why You Should Get Your Health Insurance Policy From Tata AIG
- Multiple Plans To Choose From: At Tata AIG, we offer several health insurance policies for our customers with the best possible coverage option to choose from. Under our plans, you get comprehensive covers for your medical expenses, all packaged in a single plan.
- Cashless Facilities: You can avail of cashless claims at any of our network hospitals for planned and unplanned hospitalisations. We have tied up with over 10,000+ hospitals across India to ensure that you get quality healthcare no matter where you are.
- Restore Benefits: We understand that medical emergencies can sometimes fully exhaust your sum insured amount before your health insurance policy expires. This is why we offer a restoration benefit for our plans.
This benefit fully restores your coverage amount on exhaustion up to the base sum insured with your accrued cumulative bonus. You can avail this benefit once during the policy period.
- Easy Claims Process: Our online facilities enable quick and paperless processes that can be completed within a matter of minutes. So any time you need to file a claim, you simply need to visit our site, fill out the claims form, upload your documents and click submit!
- Cumulative Bonus: At Tata AIG, we provide a 10% - 50% cumulative bonus on our health insurance policies that can be accrued up to a maximum of 100% of the sum insured amount.
- 24/7 Customer Service: We offer 24/7 customer support to all our clients on insurance applications, claims processing, and renewal processes. You can also contact us through our toll-free numbers or email for any additional queries regarding your health insurance policy.
- Renewability: We offer lifelong renewability on our policies so that you can enjoy continuous coverage at affordable rates. This benefit is available to all policyholders on timely premium payments and as long as they apply for renewal before the end of the grace period (30 days).
Tax Benefit Of Health Insurance Policies
Health insurance policies allow for tax deductions under Section 80D of the Income Tax Act, which states that an individual or HUF (Hindu Undivided Family) can claim a tax deduction with respect to the following payments:
The medical insurance premiums paid by the policyholder for self, spouse, parents, or dependent children in any mode other than cash.
Any contributions made to Central Government Health Schemes as notified by the Central Government. Payments made for preventive health checkups.
Medical expenses of senior citizens (over 60 years) who are not covered under any health insurance policies.
| Insured Person(S) Under the Health Policy | Tax Deductions Per Financial Year (In Rupees) | ||
|---|---|---|---|
| Deductions for You, Family (Spouse and Dependent Children), | Deductions for Parents | Total Deductions Under 80D | |
| Individual, family members and parents below 60 years | ₹25,000 | ₹25,000 | ₹50,000 |
| Individual, family members below 60 years but parents above 60 years | ₹25,000 | ₹50,000 | ₹75,000 |
| Individual and parents are over 60 years | ₹50,000 | ₹50,000 | ₹50,000 |
| Members of HUF below 60 years | ₹25,000 | ₹25,000 | ₹25,000 |
| Members of HUF where a member is above 60 years | ₹50,000 | ₹50,000 | ₹50,000 |
| Non-resident individual (NRI) and family and parents below 60 years* | ₹25,000 | ₹25,000 | ₹25,000 |
| Non-resident individual (NRI) and family but parents residing in India above 60 years | ₹25,000 | ₹50,000 | ₹75,000 |
In the case of preventative health checkup payments made by the individual (for themselves), spouse, dependent children or parents, a maximum deduction of ₹5,000 can be claimed, which will be included in the overall ₹25,000/₹50,000 limits stated in the table above.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
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1. What is a health insurance premium?
1. What is a health insurance premium?
This is a monthly or annual payment you make to your insurance company in exchange for the medical coverage they provide under a health insurance policy. These payments must be made on time to ensure that you get timely coverage and play a part in deciding your policy’s renewability.
Based on the frequency of payment you choose, you can opt for monthly, quarterly, half-yearly, annual, or single pay when purchasing a health insurance policy.
2. What is the difference between a co-pay and deductible in a health insurance policy?
| Definition | A payable percentage of the medical bill you must pay on all claims, and your insurer bears the remaining expense. The percentage of payment on your part is decided before the policy purchase. | A fixed one-time payment that the insured has to pay towards medical expenses. Once this sum has been fully paid, the insurer starts covering the full amount as per policy terms. |
| Premiums | The premiums can be higher if your health insurance policy does not have a co-pay option. | It does not have a direct impact on premium amounts. |
| Application | If applicable, then it may be considered every time you raise a claim. | Only considered until the fixed sum has been exhausted. After exhaustion, the insurer pays the full cost as per policy terms. |
3. How much coverage should I aim to get under health insurance?
Although there is no correct number, your health insurance coverage must at least be 50% of your annual income. Generally, your sum insured should offset the cost of a coronary artery bypass graft in a hospital of your choice.
4. Are premiums refundable?
Premiums are refundable in two cases:
If you have accidentally overpaid your health insurance policy premium due to a clerical error, you will be refunded for the excess amount.
If you have paid your premium in advance and cancel your health insurance policy before it expires. In this case, insurers often have a fixed percentage for refunds based on the number of days your policy was in effect.
