Blog Detail

"AMFI-registerd Mutual Fund Distributor"

Page Title

Home / Blog / Pragati Funds Key factors which should impact buying health insurance plans

Key factors which should impact buying health insurance plans

  December 4,2020

Key factors which should impact buying health insurance plans



The cost of medical care is rising day by day. Health care is important but it is tricky. No one cares about the price when you or someone from your family is going through any illness or surgery. It gives a sort of assurance that your financial needs will be taken care of during medical emergencies. 

If you have not purchased any health insurance policy and if you are looking to buy it, then you should know that there are a lot of factors that impact what kind of policy you get to buy. Buying a health insurance policy is a bit tricky and it is best to buy it at an early age as there will be a range of options available. As you are young, there will be no or less medical illness and you might be able to purchase a good health insurance policy. However, there are good options for everyone depending on age, geographical location, pre-existing disease, the sum insured, etc.

Factors that impact buying health insurance plans


Age is definitely a major factor in buying an insurance policy. People who are in their 20’s and early 30’s will not claim insurance as much as any elderly person. The chances of claiming insurance are less, as youngsters are able to recover early. The ones who are elderly, pay higher premiums because they are considered high-risk customers. 

Medical History:

Medical history is vital in buying a health insurance plan. The reason is that the insurer will check the risk associated with insuring you. There are various options and you will be paying a premium on the basis of your medical history. You might also have to undergo a medical examination before buying a health insurance plan. The medical history of the family is also taken into consideration. Other than a particular waiting period there is also a higher premium to be paid in some cases.

Related – Portability Of Health Insurance Plans

Geographic Location:

What place you live, which city you belong to impacts the health insurance policy. If you are living in a city like Mumbai or Delhi, the premium would be a little higher than someone who is living in tier II or III cities. The reason being the cost of healthcare is higher in metro cities compared to others. Also, the lifestyle in metro cities invites a lot of medical vulnerabilities and so the chances of claiming a policy is higher.


The amount of sum insured will have a direct impact on your premium. Sum insured is the maximum amount you can claim. The higher the sum, the more will be the premium. The add-on cover also has an impact on the premium you pay. For example, if you buy a health insurance cover of Rs 5 lakhs, you might have to pay Rs 8000 and if you increase it to Rs 10 lakhs cover, you will have to pay around Rs 10000 to 12000. 


It should be noted here that profession does not impact health insurance directly or you can not be denied for it as well. However, the profession plays a major role in buying a health insurance plan. A lot of things will depend on the type of profession, like the sum insured, add-on cover, etc. Moreover, people who are working in a risky environment might have to pay a higher premium. For example, firefighter, military and police personnel, stunt-man/woman, etc.

Medical emergencies are unfortunate, unforeseen setbacks and it may badly disrupt your finances. No one would want to worry about finances while going through a medical condition. A health insurance policy is the best way to ensure your financial stability during unforeseen medical emergencies. 

Tags : ,

Join our mailing list

Sign up to receive the latest news and promotions.