Understanding Health Insurance Premiums and Coverage Options

Are you caught between the security of a higher coverage and the appeal of a lower premium? If you are, you are not alone, as many wonder how to strike the perfect balance between these two. But before that, it is important for you to have a clear understanding of health insurance premiums and coverages.

So, read this article, as it will help you choose the right premium and coverage and give you a proper understanding of how these two are connected with each other.

How are Health Insurance Premiums and Coverage Related?

While purchasing health insurance you must find the right balance between the premium and the coverage as both factors are important. Knowing how these are related will help you get the picture clearly.

In simple words, the more comprehensive the coverage the more premium you have to pay. If you do not have sufficient coverage, it fails to offer what you need the most during a crisis rendering the investment a waste of money. On the other hand, you cannot continue to pay a premium that burns a hole in your pocket.

Therefore, you have to choose your premium and coverage based on your individual scenario and choose a plan that suits your healthcare requirements and budget.

What Factors Influence Health Insurance Premium?

If you get to know what factors influence premiums or how insurers determine premiums you will gain a better understanding. Here is the complete list of factors that determine premiums:

1.    Coverage Type

There are several types of health insurance policies offering different coverages. The more coverage it provides, the higher its premium will be.

2.    Sum Insured

Sum insured means the limit of your coverage amount. A higher sum insured comes with a higher premium.

3.    Add-ons and Riders

If you want additional perks such as coverage for critical illnesses or maternity benefits,  the premium will be slightly higher.

4.    Discounts

If you make an upfront annual payment or you have a family health plan, you may get discounts from insurance companies.

5.    Health History

Insurers assess your medical history to predict the probability of future health problems. If you have existing health issues, the premium will be slightly high.

6.    Your Age

It is perceived that younger individuals are less likely to face health issues as compared to older people. Thus, if you apply for health insurance at a younger age, you can get better deals on premium. Nonetheless, there is no “right age” to buy health insurance. You must get insured as and when possible.

7.    Location

Your location can impact the premium. Usually, health insurance is cheaper in urban areas due to the abundance of medical facilities.

What are the Types of Plans and Coverages Available in India?

The types of health insurance plans available in India among insurance companies like ACKO Insurance, based on target plan members, coverage, and more are discussed below:

●      Individual Health Plan

Individual plans provide financial cover for medical emergencies to an individual policyholder. He/she can access its benefits and the sum insured as needed.

●      Family Health Insurance

Family health plans cover all members of a family under a single plan, offering several coverages. Every member can share the sum insured.

●      Critical Illness Insurance

Critical illness coverage offers a lump-sum benefit for severe illnesses and financially protects the policyholder during treatment, hospitalisation and recovery.

●      Senior Citizen Health Insurance

Senior citizen plans cover their specific health needs related to old age, along with additional benefits like regular health check-ups.

●      Group Health Insurance

Group health insurance plans financially protect a group of individuals like a company’s employees. Every member can benefit from the sum insured and get group discounts.

How to Determine the Right Coverage for You?

As you and your family have unique requirements, your health insurance should be able to match those. Before you make a buying decision you should consider the following elements and figure out the right coverage:

1. To decide the sum insured amount, calculate the medical expenses of common potential illnesses like stroke, heart failure, cancer etc.
2. Look for a plan that includes your preferred hospitals among its network to get cashless treatment.
3. Choose a health plan that caters to both young and older people with sufficient coverage, yet affordable.
4. Consider the medical history of your family to know the possibility of your future illnesses and choose a plan accordingly.
5. You must ensure your health plan provides coverage for illnesses due to a sedentary lifestyle.
6. Understand the advantages of different types of health insurance plans, then choose the one that offers extensive coverage.
7. Assess the coverage for your personal health plan, if you already hold an employer’s group insurance plan.
8. Make sure how much premium you can afford before deciding on a health plan.
9. Evaluate the tax deduction you want and select a health insurance plan that meets your needs.

The Bottom Line

A clearer understanding of premiums and coverage options will help you choose the right health insurance as it involves balancing coverage and premiums to fit your unique needs and budget. By understanding the factors that influence premiums and the types of plans available, you can make an informed decision that ensures financial protection, as well as peace of mind.

If you want to take a look at a magnificent collection of plans with excellent coverage at affordable premiums check out ACKO Insurance.