Health Insurance Premium Calculator

“A goal without a plan is just a wish.”

And, when it comes to health insurance, knowing your premium upfront can turn that wish into a well-informed decision. For this purpose, a health insurance premium calculator is your tool for estimating costs based on age, coverage, and lifestyle.

With just a few clicks, it helps you understand what you’ll pay so you can budget better, compare policies, and choose the coverage that fits your needs without surprises.

The sum of money you must pay an insurer regularly to obtain medical coverage and to guarantee that the policy is still in effect is known as the health insurance premium.

Think of it this way: Just as you pay your Netflix subscription each month to watch movies and shows, with a premium, you can get health insurance coverage to cover the cost of medical bills.

With Netflix, the more you pay (like choosing a pro plan), the more features you get. Similarly, in health insurance, a higher premium payment often means more coverage.

With the advent of technology, most insurance companies have also shifted their operations online. They have subsequently introduced various useful online tools that make things significantly easier for policyholders!

The health insurance premium calculator is one such tool that allows you to calculate your insurance premium amount in a jiffy!

Since calculating the premium amount can be cumbersome, most people simply go with the amount suggested by their insurance providers. But with the help of an online health insurance calculator, the premium amount can be calculated in seconds just by entering a few details.

Using a health insurance policy online before purchasing a policy provides you with numerous benefits. Here is a list of benefits that you can avail:

• Financial Planning: This health insurance calculator will give you an accurate estimate of your premium amount before you purchase your policy. It will help you plan your finances more effectively for the future.
• Make Better Decision: The health insurance premium calculator allows you to adjust various parameters until you arrive at an affordable plan that easily suits your coverage requirements.
• Customisation Option: The medical insurance premium calculator displays all the add-on covers for a health insurance policy that can help you meet your financial necessities. It can thus help you calculate the premium payable if you avail of add-on coverage with your health insurance policy.
• Choosing the Best Health Insurance Policy: The premium calculator displays the health insurance policies from different insurance providers and allows you to compare between them. This makes the process of availing a suitable insurance policy much easier.
• Saves You Effort and Time: Health insurance calculators save you time by automating the premium calculation process. These calculators can also easily evaluate multiple plans, saving time and work compared to manually doing the math.

Calculating your premium payable by using an online insurance premium calculator is pretty simple!

You only need to follow a few steps, enter your details correctly and voila! You will have the premium payable for health insurance coverage. Take a look!  

• Step 1: Visit our Health Insurance Policy page and enter your PIN code and mobile number in the designated space.
• Step 2: On the next page, select the family members you want coverage with. Enter the family members' details and the eldest member's age. Disclose any pre-existing disease (if any).
• Step 3: Click on the “Continue” button and you will be taken to a page where you can customise your plan. 
• Step 4: Choose your Sum Insured in health insurance and your preferred Plan. Here, you will find a list of features under the different plans. 
• Step 5: Next you will see our exclusive discounts listed. City Discount will be automatically applied if your entered pin code falls in the eligible category. For good health discount, you will need to enter your healthy habits details. You can also choose any additional benefits like the consumables cover.
• Step 6: Next, enter your Name and PAN Card details to find out the health insurance tax benefits of paying premiums. 
• Step 7: Enter the complete details of the members you are looking forward to insuring and your complete contact details.
• Step 8: You will receive your annual premium payment amount to purchase health insurance coverage based on your chosen options.

Yes, it is as simple as that!

No cost, no hassle – only a few minutes of your time and you will know the amount you will have to pay to purchase the health insurance plan!

Now that you have learned how to calculate the cost of a premium using a medical insurance premium calculator, you must know certain factors can affect the premiums. The factors can be related to you, your plan or some additional factors. Let’s take a look at all of them:

Factors Related to You that Affect Premium in Health Insurance

• Age: Due to statistically lower medical costs, younger people typically pay less premium than older ones because of health conditions.
• Location: The cost of healthcare in your area can have a big impact on premiums. For instance, premiums are typically higher in cities with greater medical expenses.
• Lifestyle: High intake of tobacco use can increase the risk of health issues, ultimately leading to higher premiums.
• Family History: Standardized plans should have little effect on your family's medical history, while it may be taken into account in some situations (specific chronic conditions).

Factors Related to the Plans That Affect Premiums in Health Insurance

• Type of Plan: Your premium payment for your health insurance policy depends, to quite an extent, on the kind of plan you choose. Ex: Individual health insurance plans are more expensive than family floater plans.
• Add-on Covers: Add-on covers are additional coverage that increases the cost of the premium.
• Co-payment and Deductible: With deductibles, the policyholder has to bear a part of the treatment expenses before their insurance policy kicks in and with the co-payment clause, you will have to cover a percentage of the total treatment expense while the insurance provider covers the rest.
• Pre-existing Disease Coverage: If you have a pre-existing disease, you have to wait as per your waiting period to avail of the benefit. You must pay a higher premium to get coverage immediately to reduce this waiting period.

Additional Factors That Affect Premiums in Health Insurance

• Expenses incurred for Marketing and Administration: Insurance companies incur huge expenses in administrating and marketing their products. These costs trickle back to the policyholders and reflect on their premium payments.
• Investment and Savings: Most insurance companies invest capital in various public-sector companies. These investments follow the guidelines set forth by the IRDA to ensure no compliance issues later on. Hence, the premium you pay is decided by these investments.
• Purchasing the Insurance through a Broker: Although this does not increase your premium payment, it does increase the total amount you pay for the policy. This is because you will have to factor in the charge levied by the broker for the service they provide.
• Mortality Rate: Premium payment depends on the mortality rate because this is the cost that insurance providers have to bear. As a result, the premium payment differs for different age groups, generally higher for senior and super senior citizens.
• Medical Underwriting: Each insurance company offers several types of products, such as individual policies, group policies, and family floater plans. The underwriting for these policies balances the risks from each policy and manages the insurance provider's liabilities.

Who wants to pay a higher premium? No one! Here are some ways you can reduce the cost of health insurance premiums.

Avail a Policy at a Young Age

One of the most effective ways to save on health insurance premiums is to opt for coverage at a younger age. Most insurance companies' premiums increase as a person ages since they are more prone to illnesses.

Also, if you are purchasing the policy for your parents, make sure you do so before they turn 60, as the premium payment for health insurance for senior citizens is higher.

Opt for Deductibles/Co-payment

Opting for deductibles and co-payment allows you to reduce the premium on your insurance policy. While deductibles and co-payment clauses require you to cover a portion of your treatment costs, they subsequently reduce the premium paid towards your insurance policy.

Choose Top-up Plans

Since opting for a high coverage amount means a higher premium payment, you can seek a policy with lower coverage.

Further, to make sure that your financial liabilities for seeking treatment remains low, you can avail a top-up on your insurance plan, which will come into effect when the base-sum insured is exhausted.

Choose Add-on Covers Wisely

Be careful while choosing your add-on covers to ensure you are not paying more for your health insurance policy. Selecting the ones you don’t require will only lead you to incur more cost for your insurance coverage than necessary.

Purchase Directly from your Insurance Provider

Purchasing your insurance policy through a broker will make your insurance policy more expensive. This is because you will be liable to pay the charges for their service, as well. You can purchase the insurance policy directly from your insurance provider to avoid this.

Choose the Plan According to Your Zone

Suppose you live in a Zone B city, where treatment costs are much lower than in Zone A cities. The premium you pay for your health insurance policy to cover treatment costs in a Zone B city should, thus, also be less than that of the other two.

At Digit, we have two zones:

• Zone 1 - Delhi NCR, Greater Hyderabad, and Greater Mumbai. 
• Zone 2 - Rest of India.

Know about: Zone Based Health Insurance Plan

Opt No Claim Bonus Policy

No claims in the Policy year? You get a bonus -an additional amount in your total sum insured for staying healthy & claim-free! This bonus, also known as the Cumulative Bonus, is a certain percentage of the Base Sum Insured for every claim-free year.

As a result, your total sum insured increases. However, this bonus gets nullified if you fail to renew your insurance policy after it expires.

Prefer Family Floater Plans

Opting for a family floater plan instead of individual plans, where two or more people are covered under one plan, allows you to reduce its premium cost.