July 22, 2021

Although people have become too much cautious about their health and they have also started taking care of their health, but it’s quite tough to be in good health. As age advances, your health is at the risk of developing illnesses ranging from minor to major ones that require medical attention. Medical treatment costs a lot, even for a minor illness/surgery that could drain a major portion of your hard earned savings. Here, comes the role of health insurance.

Health insurance policy covers the medical expenses incurred during hospitalization, pre & post hospitalization expenses, etc. Some insurance policies also provide cover for medical check-ups, dental treatment etc. With a health cover, you don’t need to get worried about paying medical bills and just focus on your health recovery. The insurance company charges you a premium amount and provides you a health cover, as chosen by you.

How health insurance premium is determined?

When it comes to calculating health insurance premium, health insurance provider considers various factors such as age, sum assured, health condition, type of plan chosen, etc. The age of the insured is one of the major factors that are considered the most by the insurer.

People at a young age, say in an age bracket of 18-35 years are usually in a good health and people at an older age at about 35-45+ years of age have higher chances of getting ill, which requires immediate medical attention.

If at an age of 30 years, you are buying a family health policy covering you, your spouse and your son with the sum insured of 3 Lacs with 1 year policy cover, you are charged with the premium of Rs 7,269. If you are buying the same plan for your family at an age of 40 years, you need to pay the premium of 7,879. So, by buying a health cover early at 40 years of age, you need to pay an additional of Rs 610 on the annualized premium.

People in an older age might require diagnostic procedures such as blood pressure checkups, cholesterol reviews, diabetes, etc. Typically, they require frequent medical care as health issues begin to develop with the age.

With rising medical costs such as, prescription medication, doctor’s fee, hospitalization expenses, cost of surgeries, etc., the insurance companies will have to bear the higher medical cost and thus the higher risk on the insurer side. It is one of the major reasons why the insurance company increases the premium, as you grow. After properly evaluating the insured profiles, insurance companies fix the rate of premium.

In order to avoid the higher cost of your health insurance premium, you can opt for staying healthy & claim less for medical bills, buy family floater policies that charge lesser premium, switch insurer which offers health cover at a less expensive premium.


Health insurance policy ensures financial cover against medical expenses incurred due to any illness or injury. It is true that insurance companies increase health insurance premium with your age, depending on your health condition. You are advised to choose a comprehensive health Insurance policy available at affordable premiums that can provide adequate coverage as well to cater all your healthcare needs.

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