Do all health insurance premiums increase every year? Why?


Considering the steep inflation in the healthcare industry, having health insurance seems to be a necessity nowadays. Once you purchase a plan, you need to maintain it through timely premium payment. But, depending on several factors, the premium payable amount tends to increase nominally each year.

Do health insurance premiums increase each year?

Considering the Indian context, we can say that health plan premiums increase each year. Numerous factors contribute to this enhancement. However, the level of this increase may vary each year and depending on the choice of the plan concerned.

Certain health plans with fixed premium amounts remain unaltered for the pre-defined period, while others may experience yearly increments. Therefore, it is crucial to read and understand the policy documents without any doubt. All the plan and premium details remain mentioned there.

Factors affecting health policy premium amount

Health insurance premium payable amount depends on multiple factors:

  1. Age: The value tends to increase with the advancing age of the concerned beneficiary. This happens because older people are more prone to frequent health ailments.
  2. Medical history: The values tend to be higher if you have a serious medical history or PED(s).
  3. Lifestyle: The health plan premium value also gets affected due to lifestyle choices. If you tend to smoke or frequently drink alcohol, the premium value rises.
  4. Coverage: The coverage span is a major determinant of the premium amount. The wider the coverage span, the higher the value.
  5. Claims: Certain companies tend to enhance the premium after a claim settlement during one tenure.
  6. BMI: Some companies tend to charge a higher premium rate if you have a comparatively higher BMI. A high BMI triggers several ailments like diabetes, obesity, heart issues, kidney issues, etc.
  7. Location: The geographical location also plays a significant role in determining the premium value. The rates are highest in the metro cities and lessen due to the level of urbanisation.
  8. Company policies: The premium amount may also range on a higher scale due to the company policy of the respective insurance provider. The pricing structure varies from one company to another.

How to manage health insurance premium amount?

Despite the inflation, you can still manage your health insurance premium amount by following these few simple tips:

  1. Deductibles: Try to choose a plan with higher deductibles. This implies that during claim settlement, your OUP expenses will increase, but you will have to pay a lesser premium amount.
  2. Family floater plan: It is quite affordable to opt for a family floater plan, rather than picking individual health plans. It will be an umbrella plan covering all the family members together, making it more budget-friendly for you.
  3. Annual premium payment: You can save on administrative fees, if you pay your premium dues annually, rather than monthly or quarterly.
  4. Maintaining a healthy lifestyle: You can manage your health by taking more care of your health. You can engage yourself in regular exercise, a healthy diet plan, quitting or lessening your smoking habit and alcohol consumption levels if you have, to manage your health well. These habits will ensure that you do not fall sick often, and eventually lower your premium rates.
  5. Punctual payment: You must never miss the due date for premium payment. It will attract late fees, thus creating an extra burden on your pocket.
  6. Comparative study: It is best that you compare different competent plans offered by different companies for a better understanding of the scenario. It will help you to choose the best coverage at the most affordable rate.
  7. Buy early: This is the most effective way to save on your premiums. The younger you purchase a health plan, the better return it will provide in the long run, by offering optimum coverage at a much lower rate. The premiums tend to rise with age.
  8. Wise riders: You can enhance your plan’s coverage scope by adding additional riders. However, these riders must be effective and useful. Otherwise, they will result in unnecessary financial drainage.


Although healthcare inflation is always on the rise, health insurance companies also raise the premiums to cope well with the in

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