Health Insurance

Does Health Insurance Premium Change With Age?

Nov 24, 2021

Many people share a common misconception that a health insurance plan is required in old age. However, this shared misconception is a fatal thought as diseases and medical emergencies do not see age. Medical emergencies come at the most unexpected times so being equipped to face the situation is the best way to keep stress at bay. Additionally, the rising cost of medical treatment is also one of the biggest factors to avail of health insurance. 

However, many face the dilemma of the right time to purchase a health insurance plan. A health insurance plan is a specific type of insurance product where you buy a plan as per your individual needs. Similarly, it is a proven fact that as your age increases, your health insurance premium will increase. Age is one of the primary factors used to calculate the premium amount. Well, there are some valid reasons for this. 

Why does the health insurance premium change with age?

If you purchase a policy at the age of 25 then by the time you are nearing 30 you will notice a rise in the premium amount and this rise is for the benefit of the insurance customers. The health insurance premium rises with age primarily for 2 main reasons.

  1. Increase in medical care: 
    Health of an individual changes with growing age. As the age of a person increases, the health takes a toll thereby increasing doctor visits and frequent medical attention. Keeping this in mind, Mediclaim companies consider you as a high-risk person and thus subsequently charge a higher premium amount. 

     
  2. Health Risk Increases: 
    With increasing age, the immunity of a person takes a dip. So, with increasing age, the chances of the person contracting an illness, undergoing a surgery, contracting a critical illness, etc. increases. As a result, your visits to doctors and specialists increases and in addition, the consumption of medicines also increases. All these factors lead to the increased cost of medical treatment and frequent health insurance claims by the policyholder.

Apart from the above-mentioned primary factors, the following are the other factors that contribute to an increase in health insurance premium:

  • Pre-existing medical condition
  • Profession
  • Medical History
  • Gender
  • Location of stay
  • Marital status
  • Body Mass Index

Thus, keeping the above factors in mind the health insurance premium changes with age. At a young age, the cost of the health insurance premium is less as the chances of a young person contracting a disease or undergoing surgery is less. So, buying a health insurance plan at a young age is always advisable as it is more pocket-friendly as compared to buying a health insurance plan at an old age. 

Health insurance premium increases on renewal as well

Health insurance premium keeps increasing with age even if you had opted for the same at an earlier age for the two main reasons i.e. the medical costs and the health - risk associated goes up. 

Additionally, as mentioned earlier the insurance providers charge a premium amount based on age and the change of premium is based on the age-band. So, at the time of renewal when your age-band changes, there is an increase in premium. However, there are multiple benefits of opting for a health insurance plan earlier in life.

Here we have listed a few of the top benefits of buying a health insurance plan at a young age

  1. Higher coverage:
    The coverage is higher if you had opted for a health insurance plan at an early age as there would be lesser pre-existing ailments and you would thus receive an overall coverage without any exclusions

     
  2. Waiting Period:

Health insurance plans come with a waiting period condition for numerous health conditions i.e. all the medical conditions are offered coverage under insurance after completing the waiting period. So, when a health insurance plan is purchased at a young age the individual can easily sail through the waiting period without worrying about claim rejection in the waiting period.

  1. Pre-Existing Medical Conditions:

Avail a health insurance plan when you are healthy and without any pre-existing medical condition as many health insurance companies offer higher coverage to customers who do not have any pre-existing medical condition.

 

  1. Aligned Finances: 

Buying a health insurance plan early gives you a sense of security both mentally and financially. 

Conclusion

Age is the primary factor for determining the premium amount in a health insurance policy. No one can defy age and with increasing age, your health insurance premium will change. It is better to be equipped to face a medical emergency. Do not wait to grow old or to fall sick to buy a health insurance cover.
So, it is better to buy health insurance early in life, pay the premium and stay covered as  the cost of healthcare treatment is getting expensive day-by-day. A good health insurance plan can safeguard your savings in times of medical emergencies. Thus, buying a health insurance plan is important, and buying early will help you save a bit more on premiums. However, if you are in your late 40s and still haven’t purchased health insurance then remember it is never too late to be secured even if at the cost of a bit higher premium.

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