Health Insurance Premium Changes with Increasing Age

Yes, the health insurance premium cost increases as you get older. The earlier you buy medical insurance, the lesser will be the price of your insurance premium. It is because as you get older, the healthcare costs tend to get costlier. Thus, to provide policyholders with appropriate coverage, a higher premium price needs to be paid.

Here are the various age-related factors that affect health insurance premiums for policy-buyers.

Need For More Medical Care With Old Age

Old age brings several health-related issues; you might get ill more frequently and get a doctor’s consultation for every small health change.

All this medical care can cost you a lot, and when insurance companies provide coverage, they associate themselves with your health risks. Thus, to provide you with enough coverage, they charge more on premiums as you grow older; this applies even to your existing policy provider.

Change In Immunity

Another reason for the increase in health insurance rates as you get older is your lower immunity levels. With old age, your immunity takes a dip, making you vulnerable to diseases that might further develop into chronic issues.

Your policy provider might assess this risk in advance and suggest providing better insurance coverage. Thus, you might be asked to pay a higher premium price for the said coverage.

Increased Frequency of Hospitalisation

An elderly person might need to be hospitalised more frequently than a young person. Hospitalisation can be for any reason, such as bladder issues, high blood pressure, immunity issues, etc.

Having an extensive health insurance plan is crucial for proper treatment. That is why insurance companies charge increased premiums to cover the cost of frequent doctor’s visits and hospitalisation.

Increased Medication Cost

Prescription medicine for older people is a recurring expense; thus, many health insurance plans provide coverage for prescription drugs, too. This is another reason why health insurance premiums increase with age.

Increased Chances of Surgery

Several senior citizens require surgeries due to their health issues. Whether it is a cardiac surgery or joint replacement, all these procedures require a large amount of money and frequent medical attention. These frequent surgeries increase the number of insurance claims, increasing health insurance costs by age.

Also Read: Does Health Insurance Cover Cosmetic Surgery?

Organ Failure Issues

With old age, your organs will start slowing down with reduced functioning. Sometimes, it can even lead to organ shut-down and you might need to get organ transplants. The procedure and aftercare can cost a lot of money.

Anticipating this cost and the risk associated with it, the insurance company increases the price of the policy premium to provide you with sufficient coverage.

Frequent OPD Trips

With all the doctor’s visits, hospitalisation and surgeries, your run-ins with OPD will also increase. Thus, health insurance plans provide OPD coverage in their extensive coverage benefits.

Frequent OPD visits will impact your insurance claims. Thus, insurers increase the premium price to cover these claims and provide you with the appropriate coverage.

Also Read: 5 Senior Citizen Health Insurance Schemes by Government of India

The impact of age on health insurance premium can not be nullified completely. However, there are ways to lower your health insurance premium to some extent.

• Get Insured Early: The first step is to invest in a health insurance plan as early as possible. Young people are less likely to be prone to health issues, so insurance companies charge lower premiums. Moreover, it gives you protection from early on till you reach older age.
• Timely Renewal: Timely renewal of medical insurance plans not only ensures continued coverage but can also win you discounts. Thus, make sure to renew your policy before expiry.
• Raise Claim Wisely: Raising claims for small and insignificant causes can affect your claim history negatively. However, if you have good claim-free years, you can earn cumulative discounts or no claim bonus.
• Choose Right Add-ons: Add-ons provide you with extra protection in addition to the base plan. Thus, insurance companies also charge them additional prices. However, it is up to you to make sure that these add-ons are useful to you even in your old age. If not, then drop that add-on immediately.
• Take Care of Yourself: The best thing you can do as you age is to take care of yourself. Eat a balanced diet and exercise regularly; this will not only give you longevity but also reduce your chances of getting ill.

As you grow older, things start to change, and the very first change you notice is in your physical health. Old age brings higher health risks and medical emergencies for which you would need a health insurance plan. Moreover, it also changes the way you get insured, making it costlier. That is why you might see premium prices of health insurance for senior citizens more than one for young individuals.

However, regardless of premium price, investing in a medical insurance plan is crucial for everyone. With a good health insurance plan, you can get cashless hospitalisation care, consumables cover, OPD cover, daycare procedure cover and a cumulative bonus for claim-free years.

TATA AIG's health insurance policy provides comprehensive coverage and promises hassle-free claim procedures during emergencies, all at affordable premiums. Explore our Health Insurance products to select from our array of policies best suited for your needs.