Insurance policies are complex and have several terms and conditions that are often hard to understand. This makes it tough for the layman to analyse different policies, understand the benefits and comprehend the cost. The complex formula used to calculate the premiums and other related costs are difficult to use. That’s why, most companies have introduced health insurance premium calculator in their website.
This is a very crucial tool that can save you from paying extra money in premium. You can use a health insurance premium calculator to ensure you have the right premium, and also help to customise the premium with a few simple steps.
In this blog, we will discuss the advantages of using a health insurance calculator.
What is a health insurance premium calculator?
A health insurance calculator is an online tool that helps you calculate the premiums while purchasing a health insurance policy. It is easy to use and is available on most insurance website. It helps you compare the plans and also saves time. The calculator considers age, lifestyle, add-ons, etc., to give you the output.
What are the advantages of a health insurance calculator?
There are several advantages of using a health insurance premium calculator. Below are some advantages of a health insurance calculator:
Compare Plans
A health insurance calculator helps you compare and get the best plan available for your budget and needs. It also helps you achieve a balance in buying a policy that meets your needs and is also budget-friendly. In addition, it gives you peace of mind as it shows you your plans after considering all the factors involved.
Discounts
A health insurance premium calculator shows you the discounts available. This helps you get the best deal.
Customisation
A health insurance premium calculator helps you customise your health insurance plan by altering inputs such as age, gender, lifestyle, etc. You can also add riders to extend your coverage. There will be several add-ons available, but choosing the one you require is in your hands.
Thorough Research
A health insurance calculator helps you conduct thorough research on the insurance plans available. Therefore, there is no risk of fraud. It also saves you time by eliminating the need to visit insurance companies physically and hire an insurance agent, making the entire process seamless.
Informed Decision
When you visit an insurance company or talk to a sales agent, they flood your mind with several options. In addition, they pressurise you into buying a plan you know nothing about. But a health insurance premium calculator helps you find the plan and add-ons you need. Thus, you can make an informed decision.
How is the health insurance premium calculated?
The health insurance calculator considers the following factors while calculating the premium –
Age
The insurance premium tends to rise with your increasing age. This is because as you grow older, you are more susceptible to illness and diseases and are more likely to need medical attention than any younger person.
Gender
Women are charged higher premiums than men because they use more healthcare services.
Medical History
If you have anyone in the family with a history of any terminal illness such as a heart condition, cancer, diabetes, etc., you would be charged more. This is because you are at a higher risk of developing those conditions.
Lifestyle Habits
If you are a smoker, you would be charged more premiums than a non-smoker. The reason is that smokers are more likely to get lung conditions.
Pre-Existing Health Conditions
If you have any pre-existing health conditions, chances are you will need to get medical attention sooner. Thus, you are charged a higher premium.
Geographical Location
Some regions have higher healthcare costs. As a result, you might be charged a higher premium.
Profession
If you work in a hazardous environment, such as a coal mine, or have a stressful job, you may be at a higher risk of seeking medical attention. As a result, you would be required to pay a higher premium.
A health insurance premium calculator helps calculate the premium of many health insurance plans easily. It also offers free quotes. All you need to do is enter a few necessary details and click “Get a quote”. The calculator will show the quotes, from which you can choose the one you need.
