What is Mediclaim premium?
Premium health insurance comes at a price: An insurance premium is a specific amount you have to pay the insurance provider on a periodic basis to avail of medical coverage.
What is Mediclaim premium calculator?
A Mediclaim premium calculator is a software program that helps you calculate the premium you will be required to pay for a particular policy. It performs these calculations on the basis of a number of complex variables and then determines a premium amount.
Benefits of the Mediclaim premium calculator
Health insurance policies are complex documents and the terms and conditions aren’t the easiest to grasp. In such a scenario, a health insurance premium calculator comes to your aid, giving you the crucial details, you need to know.
• It provides you with an estimate of the expected premium you will be paying.
• It makes it easy for you to compare different plans, and then make an informed decision.
• It allows you to tailor your policy more flexible, adding on or removing riders based on your requirements.
• It saves you time, money and effort as you don’t need to go for in-person consultations with insurance company personnel. You can make your decision at your own convenience without being influenced by the insurance agents’ marketing strategies.
How is premium calculated?
A Mediclaim premium calculator takes a wide range of factors into consideration. Every company also has some company-specific for determining the premium for different health insurance policies. Here’s a broad set of guidelines that most providers follow.
Marketing and services expenses- Huge marketing expenditures undertaken by firms to promote their brand are to be recovered from premium payments. Operational costs also need to be recovered.
Savings and Investments- Insurance companies invest in public sector instruments due to lower risk. Your premium also depends on the kind of returns these investments yield.
Policy underwriting- Insurance products are underwritten after analysing risk from different angles and taking several factors into consideration. This yields a set of eligibility criteria.
Mortality rate- Mortality rate is the cost to be borne by the insurer in case a customer faces an eventuality. This cost increases with age as older people pose a higher risk of contracting and succumbing to diseases. Also, their sums assured are higher.
Personal history- Insurance companies consider the customer’s current health, family history and personal habits such as smoking and drinking. People with existing health issues or problematic histories, as well as those with unhealthy lifestyle habits, are charged higher premiums.
Modified Community Rating- Modified community rating considers factors such as geographical location, political stability, and economic development of the given area.
How to use Mediclaim premium calculators?
Most insurance providers have designed intuitive, user-friendly calculators of their own, based on the factors they use to calculate premiums. You simply need to enter the necessary personal details for the person/s you wish to purchase the policy. Complex calculations are performed in seconds and you are presented with quotes that help you compare and choose from a range of premium health insurance policies ideal for you.