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How Does Age Affect Your Health Insurance Premium?

will age affects your health insurance premium

Health insurance is gaining more importance in the country, as it can be a financial safeguard in unexpected medical emergencies. One crucial aspect to consider is the premium you need to pay.

One major factor that affects this premium is your age. As you get older, your insurance premiums are also likely to rise. Understanding the impact of age on health insurance premiums and health insurance premium age slab can help you plan better for future healthcare needs. Read further to explore the details and implications.

Team Digit

Does Insurance Premium Increase with Age?
Why do Health Insurance Premiums Increase?
Health Insurance Premium Age Slab
What is the Right Age to Buy Insurance?
Why to Get Health Insurance at Young Age?
Frequently Asked Questions

Does Health Insurance Premium Increase With Age?

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.

Why Do Health Insurance Premiums Increase with Age?

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 Premium Age Slab

premium for health insurance based on age

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

Age Group	Sum Insured (₹)	Premium (₹/Year)	Policy Type	Additional Features
18-25	₹3,00,000	₹2,414	Individual Health Plan	Basic Coverage
26-35	₹3,00,000	₹3,200	Individual Health Plan	No-Claim Bonus
36-45	₹3,00,000	₹4,850	Individual Health Plan	Critical Illness Cover
46-55	₹3,00,000	₹6,208	Individual Health Plan	Pre-Existing Condition Cover
56-65	₹3,00,000	₹9,500	Senior Citizen Plan	Annual Health Check-Ups
66-75	₹3,00,000	₹12,800	Senior Citizen Plan	Co-Payment Option
76+	₹3,00,000	₹15,600	Senior Citizen Plan	Higher Deductible Option

This table provides a general overview of how premiums might vary based on age and policy features. Specific premium amounts can vary depending on the insurance provider, location, and additional coverage options selected.

What is the Right Age to Buy Your Health Insurance?

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.

Why is Getting Health Insurance at a Young Age a Good Decision?

what are the reasons to get your health insurance at an earlier stage

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.

FAQS about How Age Affects Your Health Insurance Premium

All

Why will I have to pay a higher premium for health insurance if I am older?

As we get older, with age, the risk of illnesses big and small increase due to the changes in our bodies and lifestyle. With this, our healthcare expenses too rise. Therefore, this results in health insurance premiums also increasing.

Does health insurance premium change with age?

Yes, your health insurance premium will increase with age as it is believed that as you get older, the chances of health problems also rise. That's why the premium amount also increases.

Apart from age, what other factors that will affect your health insurance cost?

There are a number of factors that might affect the amount of premium you have to pay for your policy, apart from Age. The major ones are:

Medical Status
Pre-Existing Conditions
Smoking Habits
Occupation
Place of residence
Obesity
Family Medical History

If I am a senior citizen what should I look out for in a health insurance plan?

The best insurance plans for seniors aren’t the ones that have a low premium. Since they need more coverage than young people, try to pick a health insurance plan that gives you a cost effective premium and higher sum insured. In addition to that also keep in mind the following:

Ensure that your sum insured will be sufficient for an elderly person's needs.
Choose the plan with the minimum waiting period.
Always check what is covered and not covered in your health insurance policy, and try to opt for coverage like domiciliary treatment, and pre- and post-hospitalization expenses
Check that the company has a fast claim settlement ratio and a wide range of network hospitals.
If you can, customize your health insurance plan, with add-ons like critical illness cover, AYUSH cover, etc.

Why do older people pay higher premiums?

Older individuals face greater health risks and are more likely to need medical care, leading insurers to charge higher premiums.

At what age do health insurance premiums start increasing significantly?

Premiums often start increasing significantly after age 45, reflecting the higher risk of health issues.

Can I reduce my premium as I age?

Yes, opting for a higher deductible or choosing a family floater plan can help reduce premiums even as you age.

Is it cheaper to buy health insurance when young?

Yes, buying health insurance at a younger age typically results in lower premiums and better coverage.

How does a pre-existing condition affect my premium?

Pre-existing conditions can lead to higher premiums, especially as you age, due to the increased likelihood of claims.

What’s the ideal age to buy health insurance?

The ideal age to buy health insurance is in your 20s, when premiums are lower, and coverage is easier to obtain.

How does age affect critical illness coverage?

As you age, critical illness coverage costs increase due to the likelihood of developing serious conditions.

Do insurers offer discounts for early policy purchases?

Yes, some insurers offer discounts or lower premiums for policies purchased at a younger age.

What happens to premiums after retirement?

Premiums usually continue to rise after retirement, reflecting ongoing health risks, but senior-specific plans are available.

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