Health insurance is an essential part of financial planning. In a world full of uncertainties, it serves as a safety net that can safeguard you from exorbitant medical expenses. A key component of a medical insurance plans is the “premiums.” This is the amount that helps to keep your coverage active throughout the year. While premiums vary based on a range of factors, adopting a healthy lifestyle can play a significant role in lowering your health insurance costs.
Let’s explore how a good lifestyle can influence premium rates.
Understanding Insurance Premiums
When you purchase medical insurance plans, the insurance company asks for a certain amount; that amount is known as premiums. Premiums can be paid in three installments, including annually, monthly, and quarterly. They can vary depending on several factors, including your age, medical history, lifestyle choices, and the type of coverage you select. Your premium is essentially the cost of being insured and receiving coverage for medical expenses, including doctor visits, hospitalisations, surgeries, prescriptions, and preventive care.
Factors That Affect Health Insurance Premiums
The best health insurance company decides the premium amount on various factors that you must be aware of. Let’s take a look at them.
Age
Did you know? Older individuals face higher premiums because they are more likely to require medical care. As you age, insurers anticipate an increased risk of health conditions and, therefore, higher medical expenses.
Medical History
Your medical history also decides the amount you pay to the insurer in exchange for the coverage. If you have a history of chronic illnesses, surgeries, or ongoing medical treatments, you may face higher premiums. The best health insurance company assesses your pre-existing conditions before deciding the premiums.
Lifestyle Choices
One of the most significant factors that can affect your insurance premiums is your lifestyle. A healthy lifestyle, such as maintaining a balanced diet, exercising regularly, avoiding smoking, and managing stress, can help reduce your premiums.
Type of Plan
Premiums also get affected by the type of health insurance you choose. Medical insurance plans with broader coverage, lower deductibles, or more extensive networks of doctors and hospitals typically come with higher premiums.
How a Healthy Lifestyle Can Help Reduce Health Insurance Premiums?
Maintaining a healthy lifestyle benefits you not only physically but also financially. Yes, you read it correctly. When you purchase a health insurance policy, the best health insurance company assesses your lifestyle to determine your health status before deciding on premiums.
Lower Risk of Chronic Diseases
There are fewer chances of developing chronic diseases such as diabetes, heart disease, and obesity when you are healthy. Maintaining a healthy lifestyle by exercising regularly, eating a balanced diet, and avoiding smoking and excessive alcohol consumption can significantly reduce your risk of these conditions, leading to lower premiums.
Good Health
A healthy lifestyle leads to fewer medical issues, meaning fewer doctor visits and fewer claims. Insurers generally prefer customers who make fewer claims since it reduces their overall risk. If you maintain a healthy lifestyle, you are less likely to require frequent medical care. This is considered a brownie point by the insurance companies.
Improved Life Expectancy
Insurers take into account the long-term health risks. By adopting a healthy lifestyle, you improve your overall health and life expectancy. This gives them confidence that you will remain healthy for a longer period, reducing financial risk. As a result, insurance companies apply lower premiums.
Reduced Healthcare Expenses
Embracing a healthy lifestyle can lead to a reduction in overall healthcare expenses. Engaging in regular physical activity and consuming a balanced diet can help avoid the necessity for costly medical treatments or prescriptions, thereby minimising healthcare expenditures and encouraging insurers to offer lower premium rates.
Wrapping Up
Premiums are necessary for receiving the coverage; however, they should not have to be unnecessarily high. By adopting a healthy lifestyle, you can lower your premiums significantly while improving your overall health and well-being. Being healthy rewards you with lower premiums, as you might not require frequent medical attention as compared to someone who is unhealthy.
If you are looking for an insurer that recognises the value of a healthy lifestyle, consider Niva Bupa. With its focus on providing comprehensive health coverage and rewarding you for your healthy living, Niva Bupa is a great choice to maintain both your health and your finances.
