Do you know what happens with your insurance premium when you renew your health insurance policy? If you’re wondering whether your health insurance premium increases upon renewal every year; the answer is yes. Every year, your expenses like rent, fuel, food, etc. increase due to inflation and so does your health insurance premium.
It may be surprising for you to know that inflation in the healthcare industry is much higher than in other industries, and therefore, a direct impact on your health insurance is obvious. However, inflation is not the only reason why your health insurance premium increases every year. There are certainly more reasons behind this increase in the insurance premium.
Why Health Insurance Premiums Increase on Renewal?
Explained below are all the reasons behind the increase in health insurance premiums upon renewal-
1. Healthcare inflation
There is a staggering inflation in the healthcare industry every year, which affects your health insurance premium directly. You may be able to control other reasons behind the increase in health insurance premiums; however, this is something that you can’t do anything about. An increase in your health insurance premium due to inflation in the healthcare industry is inevitable.
2. The claim history
The insurers increase your premium amount depending upon your claim history, i.e., the number of times and the amount you have claimed from your health insurance policy. However, this may or may not be the case with every health insurer. To check if your insurer is increasing the premiums based upon the claims, check the terms and conditions of your health insurance policy carefully.
3. Your Age
You may or may not have thought about this before, but your age is also a factor that adds to the increase in your health insurance premiums. This holds, especially where the insurance holder is near to 60 years before renewing his/her policy.
4. Changes in coverage benefits
If you have opted for changes in your health insurance coverage benefits, it may lead to an increase in the premiums. Since this increased expense is inevitable, with your medical needs gradually increasing with time, it is better to make changes to get higher coverage by your health insurance policy.
5. Health and wellbeing
Generally, insurers do consider how healthy their insurance holders were in the last year. That means if the insurance holders are having regular health issues and need to claim from the policy more frequently, the premium can get higher upon renewal.
What can you do about the Increase in Health Insurance Premiums?
Although there is nothing much that you can do to reduce the impact of the factors that affect your health insurance premium; there are still a few things that you can do to keep the increase as minimum as possible.
- Look for the insurers that offer renewal discounts and bonuses
- Switch to the insurer that doesn’t increase your premiums depending on the claim history
- Customise your health insurance plan as per the age and medical needs of you and each member of your family
- Although, it is impossible for one to stay away from diseases/mishappenings for his/her entire life, it is still advised that you take good care of your health and well being. By doing so, you may avoid falling sick or having to claim coverage from your health insurance
Points to consider while Renewing a Health Insurance Policy
A health insurance policy isn’t a luxury but a necessity; so it is advised that you either renew your health insurance policy when it expires or port to another insurer. Here are the things that you should consider while you renew your health insurance policy-
- Your insurance coverage should be sufficient for your medical needs. If the coverage is less or way too high as per your medical needs, you should consider making changes in your health insurance policy
- You can add your family members to your health insurance plans such as your spouse or your children. Alternatively, you can also switch to a family-based plan or buy individual health insurance plans for each member
- Check whether or not you need the add-ons. If, in case, you need them or want to remove them, inform your insurer about the same at the time of renewal
- Ensure that you are content with your current health insurance policy and your current insurer. If otherwise, you must consider switching the plan or porting to another insurer
- Check if you need changes, such as more benefits or more coverage in your plan. If so, inform your insurer know about those changes that you need when you renew your health insurance policy
The answer to the question of whether the health insurance premiums increase every year or not is- yes. Several factors such as inflation in the healthcare industry, age, the number of times and the sum you have claimed, etc. add to the increased health insurance premiums. While some of these factors are out of your control and will happen every year, there are certain things you can do to minimise the increase in your premiums.
- Inflation in the healthcare industry
- Insured’s claim history
- Insured’s age
- Changes made to the insurance policy to get higher coverage
- Insured’s health and well-being in the last year
- Switch to the insurer that offers a renewal bonus or discount
- Switch to the insurer that does not increase the premium based on your claimed coverage
- Customise the health insurance plan as per the medical needs of every individual
- Your insurance coverage sum should be sufficient
- Check if you need the add-ons or not
- See if you are satisfied with your current health insurance plan or not
- Ensure that you are happy with your current insurer
- Check if you need changes to your current insurance plan or not