A walkthrough on the factors that affect health insurance premium

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Health insurance is the most necessary protection plan when one decides to buy an insurance protection for oneself and family members. To save oneself from financial trouble emerging from health issues or emergency in the future, it’s important to purchase a best-rated health insurance plan.

Before buying a health insurance plan, one must always compare the cost and benefits offered by different insurers. Playing a critical role in the purchasing process of family health insurance, premium amounts are affected by a number of factors. One’s premium amount is less if purchased at a young age. It is the most decisive factor that has an impact on the cost of a premium. Location also affects one’s premium rate; people who live in metropolitan cities are more prone to health issues, with medical costs being more expensive in such areas. 

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Family size matters, and the family floater sum assured is extended to one family including spouse and children. While the cost incurred in purchasing a family floater does not break the bank, a family of four will have to pay a higher premium amount compared to a family of two.

Gender plays a role in health insurance premiums, and women are charged more by insurers, as they believe that women use more pharmaceuticals, see the doctor more often, and are more vulnerable to chronic illnesses. In addition, pregnancy is factored in the premium. Family medical history may be used as justification for higher health insurance premiums. The nature of one’s work also plays a role in affecting premium amounts, especially for jobs involving high injury rates, hazardous chemicals, international business travel, and others.

Delos H. Yancey III is the president and CEO of State Mutual Insurance, a legal reserve mutual insurer headquartered in Rome, Georgia. For more information about the company and its work, head over to this website.