How Does Age Affect Your Health Insurance Premium?

We know that it is important to have a health insurance policy as the uncertainties in life can lead us to mishaps, and the treatments of which will cost us a fortune. To avoid any kind of monetary burdens in case of an emergency, you must own a health insurance policy with an ample amount of sum assured. You can either buy health insurance policy for an individual self or an entire family under the family floater plans. 

Usually, it is advised to purchase a health insurance policy as soon as possible. Youngsters must purchase a health insurance policy as soon as begin to earn, as this early investment helps them in the future. With the increase in age, individuals become more vulnerable to contract critical disorders, and as they grow old, their hospitalization expenses increase resulting in the draining of their savings. Therefore, to avoid such a financial disorder, you must make an early decision to invest in a suitable health insurance plan. 

How Age Affects Your Health Insurance Premiums?

It is a provision that with the increase in age of the policyholder, the amount of premium also increases. When young, people are at a lower risk of getting hospitalized for any critical disorder, and therefore, the premiums at that age are kept low, which is vice versa in the case of elderly people. So, if you purchase a policy at a young age you have to pay less amount as a premium for your policy. 

Young people get to purchase a health insurance cover same as that of an old person, at a lower premium cost. They get the benefits without undergoing any medical screening procedures, unlike older people. Also, in case of pre-existing disorders, the cover is made available for making claims only after the waiting period, until then the expenses are to be incurred by the policyholder. Therefore, if you buy a health insurance policy at a young age, you get to overcome the waiting period without any risk and as the age increases, you can have access to quality treatment using the insurance policy. 

Why Do Premium Increases With The Increase In Age? 

The premium of a health insurance policy depends on several factors like the sum assured, plan chosen, age, and many more. With the increase in the individual’s age, the premium amount also increases for the existing policy. Following are the reasons for this increase in the premium rates with an increase in age:

• Increase In Health-Related Risks

As we grow old, we tend to become weak as our immunity decreases. This puts us at risk of getting contracted to serious illnesses or injuries, resulting in hospitalization and medication at an expensive hospital, increasing the expenditure. Therefore, to cover such conditions, the insurer demands a higher rate of premium. 

• Increase In Healthcare Expenses

Keeping in mind the above point, we realize that we need a higher sum assured with increased hospitalization, which increases the premium amount. The premium rate is directly proportional to the sum assured. 

• Pre-Existing Diseases

We must also see that people with a medical history of critical diseases or pre-existing diseases in their family are more likely to become ill as they grow old. Therefore, to curb their needs and expenses, the amount of premium has to be increased. 

• Increase In The Cost of Treatment

As the years pass, the inflation in the health sector increases. The costs of hospitalization, medication, and other medical procedures increase. Therefore, to meet these expenses in case of an emergency, the policyholder is required to pay a higher premium. 

Conclusion 

Considering the points made above, it can be concluded that you must purchase a health insurance policy as early as possible to avoid any waiting period lags and to avail maximum benefits at a negotiable price. Also, with our increasing age, we can look after our health to avoid visiting the hospital frequently, this way we can not only incur the no-claim-bonus but also save our policy for genuine use. 

Must Read: How To Make Health Insurance Premium Payment Online?

Saving on Health Insurance Premiums

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.