Health insurance plans are no luxury but a non-skippable necessity in today’s times. So, ensuring it is a part of your sound financial plan is crucial. When buying a policy, there are different factors that you must remember, such as the coverage offered, policy exclusions, list of network hospitals, family medical history, any pre-existing conditions, gender, BMI, marital status, and many more. However, out of all of these, age is a critical factor that has a direct correlation to the premium of your medical insurance
Let’s understand more about this correlation via answers to some frequently asked questions.
Do Health Insurance Premiums Increase With Age?
To answer the burning question, yes, health insurance premiums go up with an increase in your age. Thus, you, as a policyholder, must be aware that your policy’s premium will go up as your age increases. This rise in premium is due to the increased risk for the insurance company.
As age increases, a policyholder becomes more prone to illnesses, and hence, to compensate for such an increased risk, the insurance company increases the premiums. For this reason, a health insurance policy for senior citizens
might see a higher increase in the renewal premium, since the probability of falling sick at an older age is higher in comparison to at a younger age. So, to summarise, you must know—the younger you are, the more affordable are your premiums as compared to older individuals.
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Why Do Premiums Increase With Age?
Here are some reasons why you will notice a rise in your health insurance premium amount as you grow older:
· The Rise in the Probability of Illnesses
As age increases, the human body becomes vulnerable to different kinds of ailments. Frequent hospital visits may not be required in the beginning but maybe a possibility as the body grows older. There is an increased reliance on medical support as lifestyle ailments and hereditary conditions start to crop out in old age. So, to cover for such an increase in the probability of you raising an insurance claim, the insurance company charges higher premiums. *
· Coverage for Pre-existing Ailments
During old age, there is a higher probability that the insurance company may have to cover an already existing ailment. This is known as coverage for pre-existing illnesses. Thus, the insurance company compensates for such a higher probability of an ailment affecting a policyholder and by refining the premium calculation. You can visit the official website of IRDAI for further details. *
· Increased Treatment Costs
Due to the advancement of medical science, the treatment of various ailments has improved. However, such a development results in an increased cost of treatment. You will probably increase the coverage of your policy to safeguard your finances, and hence, the premiums increase. *
Is it Advisable to Buy a Policy at a Young Age?
In today’s world, several lifestyle conditions impact your overall health. Considering the present medical inflation levels, it is expected to be even higher in the future. Thus, waiting to get a health insurance policy at an older age will only make it an expensive purchase.
Further, if you buy a policy when you’re young, there is a slim chance of any existing medical conditions. Thus, all future treatments will be covered by your policy even though the premium increases, eliminating any waiting period that otherwise is applicable if bought at an older age. *
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To determine the impact of your age on insurance premiums, you can make use of a health insurance premium calculator
which is a nifty tool to determine how different policy facets impact the premium calculation.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.