What Are The Factors That Have An Effect On The Health Insurance Premium Paid?

Health Insurance

The rising costs of healthcare and the increasing probability of various lifestyle diseases make medical insurance one of today’s most significant investments. However, how much do you really know about purchasing a health insurance policy? Of course, you know that you should check the premium and the benefits. But, what about the determinants that impact the amount of premium you need to pay?

Your medical insurance premiums can vary considerably based on a number of conditions. And, given below is a brief discussion on all such factors that affect your health insurance premium.


Age is the most critical factor that can influence the premium amount of the insurance policy. The typical rule of thumb that is followed is that the higher the age, the more significant the premium. The logic is simple: your susceptibility to diseases increases as you age. So, it’s better to purchase a medical insurance policy when you’re young as it will get you better benefits and comprehensive coverage at a low premium.

Previous Medical History

Your premium will go higher if you have a history of suffering from illnesses or

hold any pre-existing condition. Similarly, your premium will be lower if you’ve had no such illness and have an overall healthy life.

Nature Of Work

The nature of your work, i.e. the amount of risk you get exposed to, affects your medical insurance premium. So, the premium will be higher for someone who works at a construction site compared to someone who works in a school. The premium is based on your risk of injury and falling sick due to workplace conditions.

Body Mass Index

Premium rates are high when the customer has a higher body mass index. People with high body mass index are at risk of ailments like cancer, high blood pressure, breathing problems, type 2 diabetes, and heart diseases.

Smoking Habits

Reports suggest that India is among the top four countries, where the death rate due to smoking is high. Smoking compounds health risks, and thus, insurers see smokers as high-risk customers. Thus, they charge a high premium from smokers compared to non-smokers.

Geographical Position

Even the location where you stay might determine your medical insurance policy premium cost. Some geographic locations that have a lack of healthy food options, and health and climate issues, so higher insurance premiums are charged there.

Feature Of Coinsurance

If you choose the coinsurance option while buying a medical insurance policy, the premium will be lowered. In the case of coinsurance, you have to pay a particular portion of the claim, while the insurance company pays the rest. The premium amount is significantly reduced by this step. You can even choose to take the policy with your spouse and get the premium reduced.


So, these were the determinants that affect your health insurance policy’s premium. Insurers might include other factors in calculating the premium as well, and that varies from one company to another. It is essential to talk to your insurance broker to get a more precise idea about this subject.