How Does Age Affect Your Health Insurance Premium?

Health insurance premiums generally increase with age. As individuals grow older, they are more likely to encounter health issues and require more frequent medical care. Insurers account for this increased risk by raising premiums for older policyholders.

For example, if a 25-year-old person has to pay a premium of ₹2,414/year for a sum insured of 3 lakhs for a health insurance, one who is 50 might have to pay ₹6,208/year for the same sum. This age-related increase reflects the greater likelihood of needing medical services as one gets older.

As people age, health insurance premiums tend to increase due to the higher risk of medical issues and other factors, such as:

1. Increased Health Risks: As a person grows older, the chances of health risks are more likely to increase. This means that they are more likely to need hospitalized care for illnesses, injuries, and other medical conditions. Thus, for insurers, they are at a higher than usual risk of making a claim.

To cover these extra losses that might arise due to their health risks, insurance companies will ask a higher premium.

2. Rising Medical Expenses: When we grow older, you will likely need larger sums of money to cover your rising medical expenses, including healthcare, treatments, and even surgeries. This means that you will need a higher sum insured to cover your medical expenses. And this in turn will directly impact the premium rate.

Additionally, as you age, it also becomes more difficult to determine your risk factors and estimate health-related expenses. This is why many insurance companies put an age cap in place for individuals buying a new health insurance policy at around 65-80 years.

3. Higher Risk of Critical Illnesses: Unfortunately, ageing also brings with it a higher chance of getting a critical illness. This includes things like stroke, cancer, kidney failure, heart attack, cardiovascular issues, kidney failure and more.

Thus, they will need to be covered against such eventualities, such as with a specific Critical Illness Cover, or a higher sum insured. In both cases, one may have to pay a higher premium.

4. Pre-Existing Conditions: Older individuals are more likely to have pre-existing medical conditions such as diabetes, high blood pressure, or asthma. In addition to the likelihood of having a pre-existing condition, it might also be more severe and thus require more medical care when a person is older.

Due to this likelihood, elderly people will likely have to pay a higher premium than younger people.

5. Increased Probability of Claims: As health issues become more prevalent with age, the probability of filing insurance claims increases. Insurers must prepare for the higher likelihood of paying out claims for older policyholders.

This increased probability drives higher premiums to ensure the insurer can cover these potential claims. The statistical rise in claims as policyholders age is a major factor in the annual premium adjustments seen in health insurance.

6. Rising Cost of Treatments: Medical treatments, especially for chronic conditions, are more expensive as people age. Advanced medical interventions, long-term medications, and specialized care contribute to the rising cost of healthcare.

Insurers factor in these higher costs when determining premiums for older adults. The need for more intensive and costly treatments is a crucial reason premiums escalate with age, reflecting the growing financial burden on healthcare systems.

Health insurance premiums increase as policyholders age. Here's a breakdown of typical premiums by age group for a standard sum insured:

The best time to buy a health insurance would be while you’re still young. Ideally you should try to do so in your 20s, when you’ve just started your professional career.

This is because premiums are a lot cheaper when you are young, and you will be able to complete any waiting periods earlier in life, so that if something arises, you will be covered.  You can also get cumulative bonuses for claim free years and build up your sum insured.

Additionally, diseases or accidents can affect young adults too. So, if you ever need treatment for an accident, injury, or illness, having health insurance will ensure you don’t have to spend all your early savings.

What About Senior Citizen Health Insurance?

If you’ve already reached your older years, of course it isn’t possible to go back in time and get health insurance while you were young. In this situation, one can opt for specialized health insurance for senior citizens.

A Senior Health Insurance is designed to suit the needs of elderly people and financially covers them for medical expenses like hospitalization, medical treatments and critical illnesses, annual check-ups, accidents, and more.

In today’s sedentary lifestyle, lifestyle diseases and related medical conditions, like hypertension and diabetes, are affecting the young and old alike. Also, we all can see how the COVID-19 pandemic can impact our finances and health. It is easier for young individuals to get health insurance online than without pre-medical screening.

For example, a health insurance plan of Rs 10 lakh would cost Rs 5,000 premium per year to someone who is 25 years old, and the same policy would cost more than Rs 8,000 to someone who is 40 years old and has co-morbidities. You can boost your existing health insurance plan with super top-up health plans. You can also get some off on premium family floater plans.

Even though age impacts your health insurance premium, getting an affordable policy that covers all your needs is still possible. To do so, you can compare the various insurance options and pick the one with the most comprehensive coverage based on your age. Additionally, you can opt for super top-up plans or family discount options to get extra coverage at a lower cost at any age. This way, you can get the best medical insurance coverage at any age.