Do you know how are health insurance premiums calculated? One of the most important reasons why the average people with low income do not have individual medical policy is probably the affordability. Whatever may be the case it is still important to cover oneself and the dependents’ thorough a well-planned medical insurance policy, else your home and all other assets that one may possess will be at risk should you meet with any major accident/ illness.
It is important to compare the prices with other available sources that may offer the best medical insurance policy at reasonable rates. After comparing every factor only one should opt for the best-suited policy. There are couples of things that need to be kept in mind while taking any medical insurance policy(s).
Health Insurance Premiums Calculation: Some of these factors are discussed below for your reference.
Smoking/ chewing of tobacco have huge negative effects in our body in the form of cancer, heart and lungs disease, and providing medical insurance cover to these people means incurring high expenses/ loses for the providers. As the treatment of these diseases are very expensive. It is the most common factor why all the medical insurance companies may charge you more if you are a smoker/ chew tobacco.
If you can quit smoking/ chewing of tobacco, you may be entitled to a rather substantial decrease in your monthly medical insurance premium. Please check this terms and conditions with your respective insurance provider(s), as it may differ from one country to another.
Body Mass Index (BMI)
If you are overweight/ have high Body Mass Index than you may probably have to pay a higher monthly premium for your medical policy. Again, if you can bring down your weight by a few kilograms as per the medical insurance company’s BMI standard you may be entitled to a substantial decrease in your monthly premium. This exception may not be applicable to all countries, please check with your respective insurance provider for the same.
Good Credit Rating
This factor may not be applicable to most except in few western/ developed countries. According to this, if you have a good credit rating/ scores you will be able to save some of your hard earned money. Depending upon the availability of this facility please start using your credit cards and forms of credit wisely and start availing this amazing facility.
Extreme Sports/ Adventures
It is really a good idea to have a passion for any kind of sports/ adventures as a hobby or otherwise. But to indulge in any extreme/ dangerous sports or adventures is really risky due to their extreme risk factors that may lead you crippled and paralyzed for life or even death. Avoid driving fast and always use precautions for safety.
Group Insurance Policy
When your income is low and is not possible to afford any medical insurance policy on your own then start a group insurance policy, as they’re cheaper compared to the individual medical policy(s). It could be with the help of your family, friends or neighbors. There are many clubs, religious organization or NGO’s that may offer such policy(s). Please check accordingly.
Home-based business due to it nature may not qualify you for a group medical insurance policy. While paying taxes from it and if your tax consultant is deducting any health insurance premium that indirectly is helping you to afford medical insurance policy by offsetting the cost of it.
This is the best option for those who do not require visiting or seeing their doctors on a regular basis. It is being a fixed out-of-pocket amount that needs to be paid by the insured each time any medical service(s) is accessed and the rest being paid by the insurance provider, thus help in saving some amount of money.
Deductible income sources are one of the fastest and sure modes of saving your hard earned money. When you show increasing deductible income sources it actually helps you directly or indirectly in decreasing your cost of medical insurance policy. But you have to be very careful and honest in whatever you show, as you need to prove that every year before your insurance company. So, it is advisable to offer to pay what you can actually afford to pay.
Now, what you need to do is to get the best medical insurance policy as per your affordability and suitability by choosing the best as per your requirement. But, before you choose any insurance policies make sure that you compare the prices by comparing them with at least 3-4 insurance prices in the respective websites.