Health Insurance Calculator
A health insurance premium calculator is an online tool that helps you figure out how much your health insurance premium will be. By entering information like your age, gender, location, the amount of coverage you want, etc., the tool estimates the premiums you will have to pay for your health insurance policy.
Benefits of Health Insurance Plan Calculator
Listed below are some of the benefits of using a premium calculator for health insurance –
Helps You Estimate The Cost
Health insurance premium calculators help estimate how much a specific health insurance plan will cost. By entering the necessary details, you can get an idea of the premium you will need to pay, helping you with budgeting and financial planning.
Comparing Plans Becomes Easy
Health insurance policy premium calculators let you compare different health insurance plans easily. You can enter the same information for multiple plans and see how their premiums and benefits vary. This will help you make an informed decision based on your specific needs and budget.
Givs You Many Customisation Options
Health insurance policy calculators offer the flexibility to customise your plan. You can adjust variables like deductibles, copayments, add-ons, etc. to see how these changes impact the premium amount. This enables you to personalise your health insurance plan according to your preferences and financial situation.
Hassle-free To Use
Health insurance premium calculators in India are designed with simplicity in mind and anyone can use them effortlessly. They have a user-friendly interface, allowing you to enter your information smoothly and receive accurate premium estimates. The process is hassle-free and you can navigate through it without any complications.
Can Be Used At No Cost
Online premium calculators for health insurance are completely free. You can access and utilise these calculators without paying any fees or extra costs, explore various health insurance options, and estimate premiums without any financial commitment.
Saves You Time And Effort
Health premium calculators save you time by automating the process of calculating premiums. Instead of manually crunching numbers, these calculators can also effortlessly compare multiple plans, thereby saving valuable time and effort.
How to Use a Health Insurance Premium Calculator?
Using a health insurance premium calculator is simple and doesn't require any prior knowledge. Just follow these steps –
Step 1
Visit the webpage or landing page of the health insurance policy calculator.
Step 2
Fill in the required information like your age, PIN code, etc.
Step 3
Choose the number of people you want to insure.
Step 4
Select the desired coverage and any preferred add-ons.
Step 5
Provide any other requested details and click on 'Calculate'.
Step 6
View the estimated premium for the information you entered.
You will also be able to customise your health insurance policy by adjusting your requirements. As you make changes, the calculator will show you how the premium for different plans and requirements changes accordingly. You should keep in mind that the calculator's results are estimates, and actual premium costs may vary depending on the insurance company and other factors, including underwriting (which assesses the level of risk you pose to the insurer).
You will also be able to customise your health insurance policy by adjusting your requirements. As you make changes, the calculator will show you how the premium for different plans and requirements changes accordingly. You should keep in mind that the calculator's results are estimates, and actual premium costs may vary depending on the insurance company and other factors, including underwriting (which assesses the level of risk you pose to the insurer).
How Is Health Insurance Premium Determined?
Several factors contribute to the calculation of health insurance premiums, like –
Age
Your age has a significant impact on your health insurance premium. As you get older, the premium tends to increase because the likelihood of health issues and medical needs rises with age. Therefore, insurance companies may ask older individuals for higher premiums to compensate for the increased risk of covering them.
Medical history
Your health insurance premium can also be influenced by your and your family’s medical history. While some companies may require a medical examination, others initially rely on the information provided in the application form. Premiums are determined based on factors such as your health conditions, lifestyle habits, whether you smoke or consume alcohol, etc. Individuals with pre-existing health conditions may be required to pay higher premiums due to their higher likelihood of hospitalisation and increased healthcare needs.
Geographical location
Your geographical location can also impact the amount of premium you need to pay. Certain areas may have higher healthcare costs, which can lead to higher premiums for residents in those locations.
Add-ons
Add-ons play a key role in calculating your health insurance premiums. When you choose to include add-on covers, you are required to pay an extra amount, thereby increasing the overall premium you pay for your health insurance policy.
Some examples of add-ons -
Some examples of add-ons -
Profession
Your profession can also impact your health insurance premiums. Certain occupations that expose individuals to hazardous environments, such as construction work or jobs involving radiation or harmful substances, carry higher risks of illness. As a result, people in these professions may have to pay a higher health insurance premium compared to individuals in less-risky occupations.
Sum insured
The sum insured you choose for your policy can directly affect your health insurance premiums. It refers to the maximum amount you can claim from your insurer in the event of a medical emergency. If you opt for a higher sum insured, you will need to pay a higher premium amount.
Additional Factors Affecting Health Insurance Premium
Health insurance premiums can be influenced by various additional factors, including –
Marketing Expenses
Insurance companies spend on various marketing expenses like commissions, advertisements, operational costs, and more. These costs are counterbalanced by the premiums they collect, which in turn, can affect your overall premium amount.
Underwriting
Underwriting is another crucial factor that influences health insurance premiums. Health insurance plans, such as individual health insurance, family floater plans, and senior citizen plans, among others, determine their premiums based on underwriting assessments.
When you apply for health insurance, underwriters evaluate the level of risk you pose to the insurance company by assessing factors such as your medical history, age, lifestyle choices, pre-existing conditions, etc. Based on this evaluation, underwriters determine your eligibility for specific health insurance plans, conditions for coverage, and the premiums you will need to pay.
When you apply for health insurance, underwriters evaluate the level of risk you pose to the insurance company by assessing factors such as your medical history, age, lifestyle choices, pre-existing conditions, etc. Based on this evaluation, underwriters determine your eligibility for specific health insurance plans, conditions for coverage, and the premiums you will need to pay.
Liabilities
Insurance companies face certain liabilities when providing coverage to individuals and families. These liabilities represent the financial burden the company would bear in the event of unfortunate circumstances and one such key factor is – mortality rate. Insurance companies consider the mortality rate associated with their insured individuals, as it directly affects the potential payouts they may have to make. Older customers are more susceptible to illnesses and health complications and hence insurance companies assign higher premiums to account for the increased risk they pose.
Tips to Reduce Your Health Insurance Premiums
When it comes to managing your health insurance expenses, several effective tips can help you lower your premiums –
Understanding Deductibles and Co-payments
Deductibles refer to a predetermined amount that you are responsible for paying before your insurance coverage begins to take effect. And, co-payments require you to pay a fixed percentage of the approved claim amount.
One way to potentially lower your health insurance premiums is to voluntarily select cost-sharing health insurance plans that offer co-payment and deductible options. These plans allow you to share a portion of the healthcare costs with the insurance company, resulting in reduced premium rates.
One way to potentially lower your health insurance premiums is to voluntarily select cost-sharing health insurance plans that offer co-payment and deductible options. These plans allow you to share a portion of the healthcare costs with the insurance company, resulting in reduced premium rates.
Lifestyle Choices
The way you live also affects how much you pay for insurance. If you smoke, drink, or engage in similar habits, your insurance premiums may be higher. However, if you adopt a healthy lifestyle, you can enjoy more affordable rates.
Family Floater Plans
Consider a family floater insurance policy to lower premiums and provide coverage for your entire family. It is a policy that covers the medical expenses of your entire family under a single plan. Instead of purchasing separate health insurance plans for each family member, opting for a family floater plan can significantly reduce your premium costs.
However, you should keep in mind that a family floater policy is most beneficial when the majority of your family members are young and unlikely to require hospitalisation within the same year. Additionally, it is best suited when no member of the family has any major or chronic medical conditions.
However, you should keep in mind that a family floater policy is most beneficial when the majority of your family members are young and unlikely to require hospitalisation within the same year. Additionally, it is best suited when no member of the family has any major or chronic medical conditions.
Top-up and Super Top-up Plans
You can enhance your health insurance coverage while keeping premiums low by considering Top-up or Super Top-up plans. When your medical insurance claim exceeds the threshold limit, these plans act as extensions to your base health insurance policy. Both Top-up and Super top-up plans include a deductible, which is the amount you need to cover before the plan kicks in.
Quote Comparison
Comparing health insurance premiums is crucial in finding the best policy for your needs. Premiums can differ between insurance companies as well as among different policies. To find a health insurance plan with a reasonable premium, it is recommended to use a health plan calculator. This tool can help you select a policy that aligns with your healthcare requirements while remaining affordable.
Tax Benefits* of Health Insurance
In India, under Section 80D of the Income Tax Act of 1961, you can claim tax deductions for your health insurance premiums. The maximum deductions under Section 80D vary based on your age and the age of your family members.
What’s The Tax Deduction You Can Get under Section 80D of The Income Tax Act 1961?
Here’s a quick table to understand the tax-saving aspect -
|
Family Profile |
Maximum Tax Deductions |
|
Individuals and Parents below 60 years |
Total of Rs 50,000.
|
|
Individuals less than 60 years and Parents more than 60 years |
Total of Rs 75,000.
|
|
Individuals and Parents above 60 years |
Total of Rs 1,00,000.
|
|
Hindu Undivided Family (HUF). It comprises males with a common ancestor, their spouses, and non-married daughters. |
|
|
Non-Resident Indians (NRIs) who have bought a health insurance plan in India |
|
Health Insurance Calculator FAQs
Yes, many websites offer online tools to help you calculate your health insurance premium. These tools consider different factors and use specific formulas to give you an estimate of how much you might have to pay for a health insurance plan. All you need to do is enter the required information, and the calculator will churn out the premium for you.
Using an online health insurance calculator comes with many benefits – it is fast, easy, and saves you time. With just a few clicks, you can get an estimate of how much health insurance will cost you based on your requirements. You can also compare the prices of different policies to find the one that fits your budget. Also, these calculators often provide extra details about the coverage, benefits, limitations, etc., of various health insurance plans, helping you make a smart choice.
When you use a health insurance premium calculator, you will need to enter some basic information about yourself, your family members (if you want to include them), and the type of health insurance you are looking for. This includes your age, location, the cover amount, and other basic details. The calculator uses this information to give you a clear estimate of your premium – the more accurate the information you provide, the more precise the estimate will be.
A health premium calculator helps you estimate the payable premium for your health insurance without spending a lot of time on research. By entering some basic information and comparing the prices of different policies, it helps you find one that fits your budget and needs. Using a health insurance premium calculator saves you time and effort, making it easier for you to explore different insurance options in a transparent and simple way.
Insurance companies determine health insurance premiums by carefully considering several factors that affect the level of risk involved in covering you. These factors include age, gender, location, medical history, family medical history, the sum insured, any additional features or add-ons selected, etc.
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Disclaimer
*Tax benefits are subject to changes in tax laws. Kindly consult your financial advisor for more details.
ADV/7/23-24/1163
