In the current era of poor lifestyle,people nowadays are more prone to various diseases even at a young age. The cost of medical treatment is mounting like anything, and hence it is better to have medical insurance for the whole family. To meet the medical cost and additional treatment costs, one needs to have either a handsome amount spared in their account or medical insurance. Having a medical insurance policy often proves as a better option for sure.

Find the best policy

If you are looking to buy a health insurance plan, you would come across plenty of options. The policy from various service providers has different features, and one needs to look into all the features at par with the cost so that the best of the policy can be availed at the best rate.  So, check these points before you buy a policy for yourself or your loved ones.

• The coverage: The amount of the policy varies as per the coverage offered to the policyholder.
• The riders: Riders are known as additional benefits of coverage, which is provided at a nominal rate. However, with the addition of more riders, one may have to spend more amount as premium.
• Diseases: The simple rule here is one can have more diseases covered with more premium.
• Medical conditions: If the client already suffers from some diseases, and the same is revealed in his medical reports, the company may offer the coverage of insurance at an additional rate, which is called rate up. It is due to the risk of a claim that the company senses because of the medical condition of the client.

How is the premium calculated?

Premium is the consideration that one has to offer to have the services of the insurance service provider. There is no fixed standard or rate for premium as it may vary from person to person in different situations. Various factors play an essential role in the calculation of a premium amount. Here are a few of them discussed. One must note that the insurance premium is not the only determinant of policy, and one must check other factors also.

• Age: As per the standards, age is the main factor that plays an important role here. Those who go for insurance at an early age may have to pay a little premium compared to those who go for the same after 40. It is due to the medical standard such rates are set as after a specific age body develops various diseases, which may be because of multiple habits and lifestyle of the person.
• Sum assured: The more sum assured means high premium. In this era, when the treatment cost is touching the sky, one needs to go for a higher sum assured. Due to a higher sum assured from the company, the client may be safe at the time of illness, but the company has to take more risks. To balance the risk, it offers services with a higher premium.
• Coverage of diseases: The company offers protection against the treatment cost to numerous diseases. If one goes for protection against more diseases, one needs to pay more premium as the company has to bear the risk of cost against innumerable diseases.
• Medical record: Those who are fit and healthy can have the policy at a low premium as the company does not think their profiles as high risk. However, those who suffer from more number of diseases are at risk as per the standards of insurance companies, and hence they are provided the services at a high rate of premium.
• Offline and online policy: In some cases, it is noted that the companies offer policies at a low rate of premium if one opts to have them online compared to the cost of an offline policy, which may be bought via an agent.
• Brand name and cashless facilities: In many cases, one company offers particular coverage at a low rate while the same type of coverage provided by another company may be a costly one. It may be just due to the brand name of the company. In the cases where the cashless facilities are offered, the companies are seen asking for more premium than the reimbursement facilities.

These are some of the critical determinants of the premium. There are also some more determinants such as family history, habits, job type, and financial profile, which affect the amount to be paid to the companies as premium. Though no company can charge more premium than it is allowed by the regulatory authorities, it depends on the plan and risk to the company what it wants to charge the client.