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Does Health Insurance Premium Change on Renewal?
After the pandemic, the demand for health plans has increased significantly as more and more people are realising the importance of having medical insurance. One thing that new policy buyers should know about their mediclaim policy is the timely renewal process and its impact on premium costs. In this page, let us discuss whether health insurance premiums increase upon renewal.
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- Does Health Insurance Premium Change on Renewal?
Does Health Insurance Premium Increase Every Year?
Yes, health insurance premiums often increase every year, and several reasons contribute to this change. One of the main reasons is inflation. Inflation is a harsh reality, and nothing can escape it, not even your health insurance costs. The rising cost of healthcare in India is another major factor. Medical treatments are becoming more expensive over time, and health insurance companies adjust their premiums to cover these higher costs. Moreover, older people are more likely to need medical care, which makes their health insurance riskier for companies, and thus, their premium increases on renewal.
Factors Influencing Health Insurance Premium on Renewal
There are many reasons why your health insurance is bound to become costlier. While some of these factors are beyond your control, you can still do a lot. Take a look at the top reasons behind your ever-increasing health insurance premium:
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Inflation in Healthcare
Other than the high cost of living, inflation in healthcare is an unavoidable expense. Healthcare expenses like hospitalisation, medicine costs, surgery costs, diagnostic costs, etc. are becoming more expensive each year, and you do not have any control over it. So, to cover these rising expenses, it is only fair that your insurer will increase the health insurance premium.
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Your Increasing Age
As you age, your body gets weaker and more susceptible to diseases and injuries. For insurers, covering older individuals presents a higher risk of claim settlements, which is why they charge a higher premium for the protection offered. This is also the reason why it is always recommended to buy a mediclaim insurance policy early in life when you are young and healthy.
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Your Coverage Requirements
With time, your body and other situations may change. You may develop some medical issues, or you may switch to a floater plan covering your spouse or dependents. In fact, you may also buy health insurance riders for other benefits, which will cost you extra. Whatever the case is, your coverage will also change, which will automatically affect your health insurance premium. So, as your coverage or need for a higher sum insured increases, so will your medical insurance premium at the time of renewal.
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Your Claim History
Some insurers increase the health insurance premium on renewal based on the number of claims you have raised in a year. However, not all insurers do this. So, you must read the fine print before opting for a medical insurance plan.
Notably, if your present insurer increases your mediclaim premium based on the number of claims you make and you are not satisfied with that, then you can take advantage of the health insurance portability feature to switch to a different insurer that does not consider claim history while renewing the policy.
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Your Overall Health Condition
Your overall health condition plays a significant role in determining medical insurance premiums during renewal. Many health insurance companies in India assess your physical and medical well-being to evaluate the risk of future claims. If you develop new medical conditions or if pre-existing conditions worsen, it may lead to higher premiums.
What Can You Do to Minimise Health Insurance Premium?
Check out the tips below that can help you lower down your health insurance premium:
- Switch to the insurer that offers a renewal bonus or discount. Most health insurance companies in India offer a No Claim Bonus (NCB) for every claim-free year.
- Some health insurance plans in India also offer discounts on health insurance renewal premiums if you have met certain fitness goals, such as hitting step counts or working out.
- Switch to the insurer that does not increase the premium based on your claim history.
- Try to buy health insurance early. The sooner you buy a health plan, the better. It will be affordable, and you will also be able to claim coverage for any illness later without worrying about the waiting period.
FAQs
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Q1. Do health insurance premiums increase every year with age?
Ans: Yes, health insurance premiums generally increase every year as you age. This happens because the risk of health issues tends to rise as people grow older, leading to higher costs for insurance providers. -
Q2. Does health insurance premium increase after claim?
Ans: Health insurance premiums may increase after you make a claim as insurers sometimes view policyholders who file claims as higher risk, which can result in higher renewal premiums. However, not all insurers follow this practice. -
Q3. How can you lower your annual health insurance premium?
Ans: You can lower your health insurance premiums by buying a plan as early as possible. Maintaining a healthy lifestyle can also make a difference, as insurance companies often offer discounts for policyholders who meet specific health criteria. Additionally, participating in wellness programs or utilising preventive healthcare services offered by your insurer can sometimes lead to discounts on your premium.
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Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
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*Product information is authentic and solely based on the information received from the Insurer. Policybazaar is acting only as a facilitator and claims settlement shall be at the sole discretion of the Insurer. Policybazaar does not provide any medical or surgical advice or diagnosis and is not responsible for your interactions / treatment by a medical practitioner/hospital. Please consult a registered medical practitioner for any medical or surgical advice. The Information that you obtain or receive from Policybazaar, and its employees, or otherwise on the Website is for informational purposes only. As per the Insurance guidelines, you are allowed to cancel the policy with-in 30 days from the date of Issuance of policy.This option is available incase of policies with a term of one year or more.
*All the health insurance plans cover hospitalization expenses including COVID-19 treatment cover up to the specified limits. You can also buy specific COVID-19 health insurance policies such as Corona Kavach Policy and Corona Rakshak policy.
**All savings and online discounts are provided by insurers as per IRDAI approved insurance plans. #Tax Benefits are subject to changes in tax laws. GST Exemptions depend on fulfilment of qualification criteria and submission of relevant documents.
*₹1748/month is the starting price for a 1 crore health insurance for an 18-year-old male, with no pre-existing diseases. Discount on renewal premium is subject to the number of wellness points earned in the health insurance policy. For more details about the plans, please read the sale brochure carefully to get upto 100% discount on renewal premium.
*₹400/month is the starting price for ₹ 5 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹541/month is the starting price for ₹ 10 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹762/month is the starting price for ₹ 1 Crore Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases
*₹243/month(₹ 8/day) is the starting price for a 5 lakh health insurance for a 20-year-old male, non-smoker, living in Bengaluru with no pre-existing diseases
*₹2020/month is the starting price for ₹ 1 Cr Health insurance for a 50 year old male & 50 years old female, living in Bangalore with no pre-existing diseases rounded off to nearest 10.
*₹390/month (₹13 per day) is starting price for 1 cr. Health insurance for 25 years old male, with pre-existing diseases, residing from tier 1 city rounded off to the nearest 10.
*No medical tests are required unless requested by the insurer’s underwriter. In-case of pre-existing diseases relevant medical proof would be required as per the terms and condition of the policy opted.
*The values taken for effective cost calculation are indicative values and may change as per the selected plan.
*Coverage upto double the amount of Sum Insured is available on certain covers for a minimum plan of Rs. 5 Lakh on the first claim only to an individual of upto 45 years of age with no pre-existing diseases. The benefit is available with or without extra cost depending on the plan chosen.
*Coverage of pre-existing diseases is provided by insurer as per their underwriting policy.
*The scope of coverage may vary from plan to plan.
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Tax Benefits are subject to changes in tax laws. GST Exemption depends on fulfilment of qualification criteria and submission of relevant documents as required by the insurers. For more details on risk factors, terms and conditions, please read the sales brochure and applicable rules and regulation carefully before concluding a sale.
STANDARD TERMS AND CONDITIONS APPLY. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.
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