Before applying for a health insurance policy, you need to make sure that you can easily afford its premium.Read this post to know how you can calculate the premium of health policy.

When you purchase health insurance, you sign a contract which says that the insurer will cover your expenses up to the sum insured if you need medical care. However, this coverage is only available until you continue paying the premiums as per the terms of the policy.

As a result, it is essential to know the approximate premium of the policy even before you apply for it. This will help you decide whether a policy fits your budget. So, how is the health insurance premium calculated?
Let us have a look-

Factors Taken into Consideration for Calculating Premium

Insurance providers consider different types of factors to calculate the premium of your policy. Most of the factors are personal in nature due to which the premium of a policy can be different for two different policyholders.

Here are some of the most important factors that are used for calculating policy premium-
  • Type of policy
  • Sum insured
  • Age
  • Lifestyle
  • Existing medical conditions

Insurance providers also need to consider other factors such as marketing and administrative costs, rate of mortality, and their savings and investment while calculating your policy premium.

How Can You Calculate Health Insurance Premium?

While insurers generally consider the factors listed above for calculating policy premiums, the weightage they give to individual factors vary between different companies. So, a simple way to know the premium of a health plan is by using a health insurance premium calculator available at the insurance provider’s website.

Most insurance providers now have such calculators on their websites. As the insurance provider fixes the calculation formula used by these premium calculators, they offer highly accurate results.

How to Use Insurance Premium Calculator?

Premium calculators are very easy to use. Even if this is the first time that you are looking for health policy, you will be able to use the calculator with the utmost ease.

The calculator generally requires you to enter a few details like-
  • Age
  • Sum insured
  • Smoking/Non-Smoking
  • Marital status

Some of the calculators also recommend the right coverage amount and policy based on the factors to ensure that you are adequately covered by the right policy. Simply enter these details and click on the ‘Calculate’ button to get the approximate premium of the policy.

Insurance Premium Calculator to Instantly Calculate Policy Premium

As you can see, the health insurance premium amount can be instantly and accurately calculated with the help of a premium calculator. Visit the official website of the insurance provider whose policy you are interested in to use the calculator and know the premium amount before you decide to apply.

Learn more about Health Insurance Plans here.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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