Health Insurance Premium - What you need to Know

Updated: Apr 24, 2019

We all know that a health insurance premium is the fixed amount of money that you pay to your insurer, periodically (mostly monthly) in order to contribute to your sum assured and also to keep the policy valid and applicable. But why how is your premium decided? Why does the premium amount vary from person to person? Let’s get to know some facts about health insurance premium:

1. Personal attributes that decide your premium amount:

  • Your age: the thumb rule is that the earlier you buy the policy, the lower will be the premium with more benefits as you are less susceptible to diseases. The more you delay your purchasing date, the more expensive the premium gets

  • Your income: it decides how much premium you can afford

  • Your health condition: Your premium is lower if you buy a policy when you don’t have any chronic or lifestyle disease but if you buy a health insurance as soon as you acquire an ailment like diabetes, hypertension, etc. then your premium naturally becomes high as you are no more considered to be a safe candidate

  • Your family history: if your family has a history of cancer, diabetes, etc. it increases your chances of having them. Hence your premium is higher than a person with a healthier family history

  • Your lifestyle: if you smoke, drink, etc. your premium will be higher

2. Insurer attributes that influence the cost of your premium:

  • Company expenditures: a part of the marketing expenses (production of the brochure and ads; broker commission; designing the policy; etc.) of the insurance company are covered by your premium. How many portions of the premium is to be used for this also decides the extent to which your premium will be cheap or expensive.

  • Investment: your premium’s cost is also based on the amount of its portion is used by the insurer for investment purposes as per the IRDA rules and also on the rate of return on such investments.

  • The geographical location; market condition of your area; political stability of your place – influence the cost of your premium.

Other facts about health insurance premium:

  • The tax benefit under section 80 D of the IT Act is not applicable if:

- The premium is paid via hard cash

- Paid out of any source other than the income.

- The premium amount crosses a certain limit.

  • If you choose to have a low premium, it will be pocket-friendly in the short run but it also means an equally low sum assured with lesser benefits

If you are planning to buy a health insurance policy, then get in touch with the experts of ManipalCigna for the best health insurance premium deals.


ManipalCigna Health Insurance Company Ltd (Formerly known as CignaTTK Health Insurance Company Limited) | CIN U66000MH2012PLC227948 | IRDAI Reg. No. 151 
Reg. Office: 401/402, 4th Floor, Raheja Titanium, off. Western Express Highway, Goregaon (East), Mumbai- 400 063 | Toll free number – 1800-102-4462 | Website address –
Trade Name / Trade Logo belongs to MEMG International India Private Limited and Cigna Intellectual Property Inc. and is being used by ManipalCigna Health Insurance Company Limited under license. For more details on risk factors, terms and conditions, please read the sales brochure/ sales document available on our website (Download section) before concluding a sale.

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