Health insurance is one of the most vital requirements of life. You simply cannot take the risk of living without a good health insurance cover in place especially with the double digit inflation of medical expenses. Thankfully, there are some very good health plans available for you. 2018 has turned out to be a great year for the health insurance industry with many insurers launching many exciting policies. Read on to know more.
Things you need to know about premium
There are a few things that you need to know about health insurance premium before you go looking for the best plans. They are:
- Premium brings the cover: This is the most important component of health insurance plans online. The premium that you pay fetches the cover. In other words, the cover is valid till the time the premium is paid. The cover is a promise the insurance company makes to you in return for the premium that you pay.
- Premium default leads to policy lapse: As already stated, if the premium is not paid, the cover is discontinued. So to keep the cover intact, you must continue paying the health insurance premiums on time. If you default on paying the premium, your policy will lapse. A claim made on a lapsed policy will never be honoured and you will miss out on your health insurance cover when you need it the most.
- Premium is directly proportional to cover: This is a pretty straightforward point to understand – the higher the premium, the higher the cover. The health insurance premium is directly proportional to the cover that you get from the policy. This is why it is vital for you to carefully assess your own requirements before buying a plan. Everyone wants the highest cover, but not everyone can afford to pay a steep premium. See what kind of cover you need and get a premium rate that is affordable. This will help you to stay covered in a comprehensive yet economical manner.
Things that can affect the rate of premium
Now that you know the basics about health insurance premiums, you will have a better idea of what you are paying your money for. Let us take an even more detailed look at the factors that further affect the premium rates of the various health insurance plans:
- Type of cover: If you buy a regular health insurance plan you may have to pay a lower premium as compared to a specialised plan such as a critical illness plan or a maternity cover with a short waiting period. So the type of health insurance cover you choose determines the kind of premium you have to pay.
- Riders: Riders are additional covers that you can attach to your basic health insurance policy to make it more wholesome. Understandably, the premium of a health insurance plan will go up if you add a couple of riders to your base policy. This is a crucial factor affecting the rate of premium in health insurance.
- Scope of cover: The larger the premium, the larger the cover. If you have a new baby in the family and want to include her in the family floater plan, your premium rate will go up. Similarly, if a particular family member passes away and is automatically taken out of the health insurance umbrella, your premium rate will come down.
- Health condition: A young and fit person will have to pay a lower premium for the same plan that an older and unhealthy person has to pay more for. So your (and your other family members’) age and health conditions at the time of taking the health insurance plan are highly significant factors affecting the premium of the cover.
The bottom line
So as you can clearly see from the points mentioned above, the premium is perhaps the most important component of health insurance. You cannot get a cover, expect to have it in operation and get your health plan renewed unless you pay the premium first. So don’t be lackadaisical about the health insurance premium payments. Make the payments as and when required and enjoy an uninterrupted health insurance cover. Look for a plan that will offer you a good and meaningful cover. Fortunately, the many health insurance plans of 2018 offer just that and you will surely find an excellent option for yourself. So what are you waiting for? Go online and start exploring the wonderful world of health insurance and find a great cover for yourself.