When purchasing medical insurance plans, one of the most important factors to consider is the premium. It is the amount of money you will have to pay to the insurance company for the coverage provided by the policy. Understanding how to calculate the premium can help you make an informed purchasing decision.
To help customers in this process, insurers provide a tool known as the mediclaim premium calculator on their websites. It allows potential buyers to estimate and compare the cost of different insurance plans. This article will give more information about the calculator and discuss the factors insurance companies consider while calculating the premium.
How are Premiums Determined for Medical Insurance Plans?
There are some common factors that insurance companies typically consider when determining the premium for a mediclaim policy. They are listed below.
Age
As the policyholder grows older, the likelihood of them experiencing a health issue also increases. Due to this, the premium of older policyholders tends to be higher than that of the younger population.
Sum Insured
This refers to the maximum amount the insurance company will pay out in case of an event covered under the policy. The higher the sum insured, the higher will be the premium, as it means the insurance company will be liable to pay out more in case of a claim.
Policy Term
The longer the policy term, the higher the premium will be. This is because the insurer takes on more risk over an extended period.
Medical History
If the policyholder has pre-existing medical conditions, they are considered a higher risk to the insurance company. As such, they may be charged higher premiums.
Occupation
Individuals involved in high-risk jobs, such as miners or pilots, may have to pay higher premiums. This is because such jobs tend to have higher incidences of accidents or injuries.
Area of Residence
Premiums can vary depending on the location of the policyholder. This is because healthcare costs can vary depending on the location. For example, healthcare in urban areas is generally more expensive than rural healthcare.
How to Use the Mediclaim Premium Calculator?
Calculating insurance premiums using the health insurance calculator is an easy process. You only need to enter your name, age, email address, and mobile number. In addition, you must give the name of the city where you now reside. You can choose the mediclaim product that best meets your needs from a list of options generated based on your input. Then, you can adjust the coverage options and watch the cost of your health insurance vary.
What are the Benefits of the Premium Calculator?
Using a mediclaim policy calculator can make the process of obtaining a health insurance policy quicker and more cost-effective. The advantages are further explained below:
Convenience
The online calculator allows you to calculate the premium for medical insurance plans without having to contact an insurance agent. This saves you time and effort. Also, most premium calculators are user-friendly and easy to use, even for people who may not have a lot of experience with insurance.
Financial Planning
It gives you an estimate of the overall cost burden of your insurance policy. You can thus plan your expenses and investments for the coming period beforehand, keeping in mind the policy obligations. As a result, you can avoid defaulting on the premium payment.
Comparison
You can quickly compare the premium for different policies offered by different insurance companies. You can also learn about the available discounts. This can help you find the one that offers the coverage you need at a price you can afford. Moreover, by adjusting the inputs like sum insured, add-ons, and benefits, you can find a policy tailored to your needs.
Conclusion
Overall, a health insurance calculator is a valuable tool for anyone looking to purchase a mediclaim policy. However, it should be noted that premium is only one aspect to consider when buying a policy. You should also take into account the policy’s coverage, the network of empanelled hospitals, the renewability clause, the insurance company’s reputation, etc. It is crucial to research and consider all factors before finalising your purchase.
