With the pandemic, the necessity for having a thorough health insurance plan markedly increased. Simultaneously, it’s essential that the plan is renewed promptly to benefit from the health insurance advantages when needed. Have you ever observed that during renewal, the health insurance premium goes up? Time and escalating inflation influence the daily essentials of life, such as groceries, fuel, etc. In the current times we are experiencing, healthcare costs have also risen. Due to the lifestyle we are leading, we are susceptible to various health risks.

In this article, let us explore the reasons why health insurance premiums fluctuate every year.

Factors Affecting Health Insurance Premiums on Renewal

Here is a summary of the primary reasons that elevate the health insurance premium upon renewal:

1. Age of the Policyholder
   If you are not aware, age is a significant factor that affects the insurance premium. As you age, the insurance premium gradually rises. It is advisable to purchase medical insurance at a younger age as you are most likely in optimal health. Health insurance for older adults will tend to be pricier.
2. Medical History/Condition
   You may have been in excellent health when you acquired the mediclaim policy. Nevertheless, a year is a considerable amount of time, and there may be instances of you being diagnosed with an ailment or illness. Therefore, when renewing the health insurance premium, ensure to communicate all facts diligently to the health insurance provider.
3. Customize the Policy
   The insurance requirements of a person change over time. During renewal, there may be specific health coverages that you wish to maintain or you may want to expand your insurance coverage. This affects the premium amount. Tailoring the policy during renewal will alter the insurance premium cost. It is advisable to adjust the policy according to your requirements.
4. Claim History
   Certain insurance companies may hike the premium amount based on the claim history of the policyholder. When purchasing the insurance policy, it is wise to read and re-examine the policy terms and conditions attentively.
5. Inflation in Healthcare Facilities
   The healthcare sector is undergoing inflation, which impacts the insurance premium. Various other factors also influence the premium amount. However, the surge in healthcare costs typically results in an increase in medical insurance premiums.

Important Things to Consider While Renewing a Mediclaim Insurance Policy

Life is unpredictable, thus it becomes essential to be ready for any uncertainties. Having a comprehensive health insurance policy is crucial to safeguard you against potential financial adversities.

If your insurance policy is up for renewal, ensure to complete it on time before it expires. While renewing the medical insurance, you should take into account the following points:

• The changing medical needs should be addressed by the insurer, and be aware of the insurance coverage. The health insurance plans for families and senior citizens may differ compared to those for younger individuals.
• If you have immediate dependents, make sure to select a family floater health insurance plan.
• Add-on riders improve the comprehensive coverage of the plan. Nevertheless, it’s essential to select health insurance riders according to your requirements. Keep in mind, the riders incur an additional nominal expense.
• Finally, before renewing the health insurance policy, review the document thoroughly. Evaluate the health insurance requirements and tailor them to the current base health plan.

In a Nutshell

Indeed, multiple factors influence the health insurance premium. Your choice to purchase or renew the plan should not solely rely on the premium cost. Uncertainty does not announce its arrival. Being protected aids in both planned and unforeseen medical emergencies in life.

Evaluate the health needs and narrow down a plan that aligns with your requirements and financial capacity. You can renew the health insurance online and also compare the quotes. Additionally, remember to check for any renewal benefits that your insurer might provide. Carefully read the policy’s terms and conditions to make a well-informed choice.