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The Impact of Age on Health Insurance Plans

The premium of a health care insurance policy is dependent on many factors. The bearer’s age, location, gender, pre-existing illnesses, etc., are some of the factors which affect the premium to be paid by them. Of these factors, age is quite important. In this article, we will look at how age affects health policy and how one can reduce health care insurance premiums.

How does Age Affect Health Policy in India?

Health Insurance companies in India charge more premiums as a person grows older. Since younger people do not frequent hospitals as much as older folks, the cost to the insurance company is lesser. But as a person ages, so do their ailments as well as their susceptibility to develop disorders and illnesses. The frequency at which seniors require medical help impacts the expenditure of the insurance company. An insurance company must be able to cover medical expenses that happen at regular intervals. Hence, the cost of the premiums is higher as the person’s age increases.

Why is it Helpful to Buy a Health Plan at a Young Age?

A medical emergency can arise at any unexpected moment. It can be an accident, viral infection or any other ailments; one cannot predict the occurrence of a health risk. Paying for expensive medical care is too much of a financial burden to be borne by an individual, especially if they are younger and have just started working. Hence, investing in a medical insurance policy that shares this burden or bears it completely is necessary. 

There are many advantages to buying a medical insurance policy at a young age. For starters, the premiums are lower. Since the likelihood of experiencing severe health issues at that age is lower, insurance companies do not charge as much to the bearer. Many insurers have a waiting period before one can avail the policy. This could cause a lot of inconvenience in case of emergencies if you have recently bought a policy. You would have to spend on treatment, hospitalisation and other charges on your own.

Many insurance companies also offer a no-claim bonus on their health policies. This means that a person gets a discount on their premium once the current plan expires if the insured has not availed the policy during the past year. Since the frequency of using a policy at a younger age is lower, having a no-claim bonus is beneficial in the long run.

If you choose to buy a health plan at a younger age, there is little to no pre-medical screening. Since pre-existing conditions significantly affect the benefits and premiums of the insurance, it is more advantageous to subscribe to a policy early before one starts to develop any illness.

How to Reduce the Premium on a Health Insurance Policy?

One can still avail a more comprehensive coverage with a less expensive premium. 

A top up health insurance policy is a plan which provides additional coverage to existing health plans. If the insured has exhausted their sum insured and is in need of additional funds for the expenses, a top up health insurance policy is the best way to go. A top up health insurance plan is usually bought as an add-on for a policy and acts as a booster to your sum insured for a lower premium. 

The premiums for top up plans are usually cheaper than the basic health policies, and one can feel safe during a medical emergency even if the sum insured on a basic health plan runs out. In case you have a very basic health plan as a part of your employee group health insurance, a top-up can be extremely beneficial in the event of hospitalisation or a critical illness.

Medical insurance is necessary for survival in an age where expenses are sky-high. Investing in one at a young age can save a lot of money and be beneficial in many ways in the long run. For more information on the best policies that offer significant benefits, you can visit Niva Bupa’s website and check some of the policies they offer. Most of their policies provide comprehensive coverage with affordable premiums that suit your requirement. 



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