Health Insurance Premium Calculator

Health insurance can be tricky, with hidden costs in the fine print. If you don't fully understand it, you might end up paying more than you thought. To avoid this, online insurance providers have now introduced health insurance calculators.

These calculators can help you make smart choices before getting a health insurance policy.

Think of it like a magic price generator. You tell it what matters to you - your age, what kind of coverage you need, and maybe even if you want to cover your family. And it shows you how much different plans would cost.

You can also use it to compare different health insurance plans online. This helps you figure out which plan gives you the best value for your money.

Basically, with this handy tool, you can:

Compare Plans Side-By-Side: Find the perfect fit for your wallet and needs.

Get Real-Time Price Estimates: No more surprises, just clear numbers before you commit.

Make Smart Choices: Feel confident you are protecting your health without breaking the bank.

Also Read: Comparison of Health Insurance Plans in India

Think of critical illness insurance as a shield against unexpected medical bills. However, this shield comes at a cost – the health insurance premium.

In simple terms, a premium is the recurring payment you make to your insurance company to keep your health insurance policy active. It's similar to a monthly subscription fee, except instead of unlocking streaming shows, it unlocks peace of mind, knowing you are financially covered for medical expenses.

Think of it this way: your monthly premium is like putting money into a healthcare piggy bank. And your coverage is the shield that draws from your piggy bank when medical bills come knocking.

Now, the amount of your premium depends on several factors and determining your health insurance premium involves considering these factors, some specific to you and others related to the plan itself:

-Factors Related to You:

Age: Generally, younger individuals pay less than older ones, as they statistically incur fewer medical expenses.

Location: Premiums can vary significantly depending on your area's healthcare cost. For example, cities with higher medical costs usually have higher premiums.

Tobacco Use: Smokers and tobacco users typically pay higher premiums due to the increased risk of health problems associated with tobacco use.

Health Status: While pre-existing conditions used to affect premiums in many countries directly, this is no longer the case in most places. However, some risk-based plans may consider your overall health status (BMI, etc.).

Family History: In some cases, your family's medical history (certain chronic diseases) may be considered, but the impact should be minimal with standardised plans.

-Factors Related to the Plan:

Type of Plan: Different plans offer varying coverage levels and have different costs. Generally, plans with more comprehensive coverage have higher premiums.

Coverage Amount: The maximum amount the insurance company will pay for covered expenses within a year affects the premium. Higher coverage amounts typically mean higher premiums.

Deductible: The amount you pay out-of-pocket before the insurance company starts covering costs. Higher deductibles generally translate to lower premiums.

Co-Pays and Co-Insurance: You may share additional out-of-pocket costs with the insurance company for specific services. Lower co-pays and co-insurance usually mean higher premiums.

Understanding how these factors influence your premium can help you make informed decisions when choosing a health insurance plan. With the help of the online insurance premium calculator, you can compare quotes and find a plan that balances your desired coverage with your budget.

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.

Quite surprisingly, there are ways to potentially reduce your health insurance premiums without compromising essential coverage!

Here are some strategies to consider:

Research and Compare Plans: Don't blindly renew your current plan! Explore other plan options and compare features, coverages, and, of course, premiums. An online mediclaim calculator can be your best ally in this quest.

Choose a Higher Deductible: Opting for a plan with a higher deductible can significantly lower your premium. Remember, though, you will need to have that upfront amount readily available in case of unexpected medical expenses.

Stay Healthy: Maintaining a healthy lifestyle can benefit your overall well-being and make you eligible for discounts on certain plans, i.e., Quit smoking and alcohol.

Review your Coverage Regularly: As your needs and budget change, reassess your plan regularly. You might be able to find a more affordable one with similar coverage or adjust your current plan to suit your situation better.

Consider Family Plans: Picking a family healthcare plan might be more affordable than 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.

Opt for Longer Policy Tenures: 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.

Health insurance plans for family 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.

To calculate the premium for health insurance, various factors are taken into account, and these factors may vary across different insurance companies.

At Tata AIG, for instance, the following elements are considered in the premium calculation:

-Age and Location/PIN Code: Your age is crucial, as older individuals may have different premium rates. Also, the location or PIN code is taken into account, possibly due to varying healthcare costs in different regions.

-Number of Insured People (Family Health Insurance): In the case of family health insurance, the premium calculation considers the number of individuals to be covered under the policy.

-Policy Type and Tenure: The type of health insurance policy you choose (individual, family, etc.) and the duration of the policy (tenure) are important factors.

-Desired Sum Insured Amount: The sum insured, or the coverage amount you want, plays a significant role in determining the premium.

-Medical History: Your medical history, including pre-existing illnesses or critical illnesses, is assessed. This information helps the insurance company understand the potential risks.

-Lifestyle Habits or Choices: Certain lifestyle factors, such as smoking or engaging in hazardous activities, may impact the premium. Unhealthy habits could pose higher risks and lead to increased premiums.

-No Claim Bonus or Cumulative Bonus: If you have a history of no claims, some insurance companies offer a no-claim bonus or cumulative bonus, which can affect the premium.

-Add-On Covers: Any additional covers or riders you choose to add to your policy will contribute to the overall premium calculation.

Now, when it comes to the benefits of using a health insurance premium calculator, there are plenty!

Here are a few pros of using this tool while picking the right insurance plan for yourself or your family:

Cost Estimation: A health insurance premium calculator accurately estimates the insurance premium based on the individual's specific details. This helps you plan your budget effectively and understand the financial commitment associated with the chosen health insurance policy.

Customisation: Individuals can customise the parameters, such as coverage amount, policy tenure, and add-on covers, in the calculator. This allows you to explore various scenarios and tailor the insurance plan to meet their specific needs.

Comparison of Plans: This tool enables users to compare different insurance plans easily. You can assess and compare premiums from various insurance providers by inputting the same details into multiple calculators. This empowers you to make an informed decision about which plan offers the best value for your requirements.

Time-Saving: Calculating insurance premiums manually can be time-consuming and complex due to the multiple factors involved. The premium calculator streamlines this process, providing quick and efficient results. You can swiftly assess different scenarios without the need for extensive calculations.

Eliminate Errors in the Calculation: An online health insurance premium calculator eliminates 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 this, that risk is eliminated.

Also Read: 15 Terms You Must Know Before Buying Health Insurance

In addition to providing peace of mind and financial security in case of medical emergencies, health insurance policies in India offer some attractive tax benefits. These benefits can significantly reduce your tax liability, making them even more valuable.

Here's a breakdown of the key benefits of health insurance you can enjoy with a health insurance policy:

Deduction Under Section 80D:

This is the primary tax benefit associated with health insurance. Under Section 80D of the Income Tax Act, you can claim deductions on the premiums paid for your own health insurance, spouse's health insurance, and dependent parents' health insurance.

Deduction Limit for Individuals:

• Up to ₹25,000 for self and family (if below 60 years old)

• Up to ₹50,000 for self and family (if you or your spouse are above 60 years old)

Additional Deduction for Senior Citizens:

• Up to ₹25,000 for dependent parents (if 60 years and above)

• Up to ₹50,000 for dependent parents (if 80 years and above)

Deduction for Preventive Health Check-Ups:

You can also claim a deduction of up to ₹5,000 per year for preventive health check-ups for yourself, your spouse, and your dependent parents under Section 80D. This deduction is in addition to the deduction for health insurance premiums.

Tax-Free Maturity Benefit:

If you receive a maturity benefit from your health insurance policy, it is completely tax-free. This means you don't have to pay any tax on the amount you receive at the end of the policy term.

No Tax on Claim Amount:

Any amount you receive from your health insurance company for covered medical expenses is also exempt from tax. This ensures you get the full benefit of your insurance claim without any tax burden.

With so many options in front of you, why would you choose Tata AIG to be your trusted insurance partner? Well, for starters, we practice what we preach and have gradually made a place for ourselves in India's insurance sector.

Now, if you wish to learn a few more benefits of choosing us over other options, read below:

Multiple Plans To Choose From: When you buy health insurance online from Tata AIG, you can choose several health insurance policies with the best possible coverage options. Under our plans, you get comprehensive coverage 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 of 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).

Remember, investing in health insurance is not just about protecting your health; it's also about saving money on taxes. So, make the most of these benefits and enjoy a healthier and financially secure future!

With the help of an online mediclaim policy premium calculator, you can ditch the guesswork, navigate plans, compare prices and find the perfect fit for your needs and budget. Empowered with knowledge, you will choose a plan that protects your health and safeguards your finances.