Why Does Health Insurance Premium Increase on Renewal?

With the pandemic, the demand for a comprehensive health insurance plan significantly increased. At the same time, it's imperative that the plan is renewed timely to avail of the health insurance benefits when required. Have you ever noticed that during renewal, the health insurance premium increases? Time and rising inflation impact the everyday amenities of life, such as groceries, fuel, etc.

In the times we are living in, healthcare expenses have also increased. The kind of lifestyle we are leading, we are prone to various health risks, etc. In this article, let us delve into understanding the reasons why health insurance premiums change each year.

Factors Affecting Health Insurance Premiums on Renewal

Ever wondered: Why does your health insurance premium increase during renewal? Look into the factors below for a deeper understanding:

Age of the Policyholder

If you are unaware, age is a prudent factor that impacts the insurance premium. As you grow older, the insurance premium gradually increases. It is suggested to buy medical insurance at a young age, as you are most likely in the best of your health. Health insurance for senior citizens will be on the expensive side.

Medical History/Condition

You may be in the best of health when you purchase the mediclaim policy. However, one year is a long time, and there could be chances of you getting diagnosed with an ailment/illness. So while renewing the health insurance premium, ensure to state all the facts carefully to the health insurance company.

Customise the Policy

The insurance needs of an individual vary from time to time. During renewal, there may be certain health cover that you continue or look forward to adding more insurance cover. This impacts the premium amount. Customising the policy during renewal will change the insurance premium amount. It is better to customise the policy as per the needs.

Also Read: What is Micro Health Insurance and Why is it Important?

Claim History

There are insurance companies that may increase the premium amount based on the claim history of the policyholder. While buying the insurance policy, it is recommended to read and re-read the policy terms and conditions carefully.

Inflation in Facility of Healthcare Facility

The health sector is experiencing inflation, which affects the insurance premiums. Various other factors also affect the premium amount. However, the increase in healthcare expenses tends to increase the medical insurance premiums.

Still looking for a health insurance plan offering coverage and renewal benefits? Go through My Health Care Plan of Bajaj General Insurance and safeguard your loved ones against increased healthcare expenses. Compare plans, customise coverage options and renew hassle-free.

Important Things to Consider While Renewing Mediclaim Insurance Policy

Life is uncertain, hence it becomes important to be prepared against any uncertainty. Having a comprehensive health insurance policy is important to secure you against possible adversity financially. If your insurance policy is due for renewal, ensure to do it on time before it lapses. While renewing the medical insurance, you should consider the following pointers:

1. The varying medical needs should be met by the insurer, and be mindful of the insurance coverage. The health insurance plans for families and senior citizens may be different in comparison to a young person.

2. If you have immediate dependents, ensure that you opt for a family floater health insurance plan.

3. Add-on riders enhance the overall protection of the plan. However, it's important to choose health insurance riders as per need. Remember, the riders come at an extra nominal cost.

4. Last but not least, before renewing a health insurance policy, go through the document carefully. Analyse the health insurance needs and customise the needs to the existing base health plan.

Conclusion

Yes, various factors impact the health insurance premium. Your decision to purchase or renew the plan should not only be based on the cost of the premium. Uncertainty never comes knocking at the door. Being secured helps both in planned and unplanned medical emergencies in life.

Analyse the health requirements and zero down a plan that fits your requirements and budget. You can renew health insurance online and compare the quotes as well. Also, do not forget to check on the renewal benefit that your insurer may offer. Read the terms and conditions of the policy carefully to make an informed decision.

Frequently Asked Questions

Is it normal to increase my health insurance premium every year?

Yes, health insurance premiums increase every year because of various factors such as medical inflation, policy improvements, medical risk changes, age, etc.

Do premiums rise based on claim history?

Yes, insurers can increase premiums if the policyholder has made lots of claims or costly claims during the policy duration.

Do health insurance premiums rise every year with age?

Yes, premiums usually tend to increase every year with age as older individuals undergo expensive medical treatments and healthcare services.

How can I lower my annual health insurance premium?

To save on premiums, opt for early insurance purchases, adopt a healthy lifestyle, select the appropriate coverage, and choose premium extra options.

Can health insurance companies increase premiums without prior notice in India?

No, insurance companies usually let policyholders know about any premium increases or modifications to their policies in advance of the renewal.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

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.

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