A group medical insurance premium calculator is a free tool that one can use to know the premium rates for different plans. It considers several factors such as the policyholder’s age, gender, sum insured, policy tenure, number of insured people, etc., to provide you with accurate data.
You can use premium calculators to compare and analyse different group health insurance plans. Instead of settling for any insurance policy suggested by the insurer, you can choose the best insurance policies with your research. It is also advisable to go through the terms and conditions of a policy to opt for the right plan.
Read along to know about the premium calculators, their benefits and factors affecting insurance premiums.
Follow the given steps to use a health insurance premium calculator:
The following factors determine the premium costs of a group health insurance:
The number of employees
The more employees a group health insurance covers, the lesser risks it carries for the insurance company. Hence, companies with a larger workforce are able to negotiate premium rates for group mediclaim.
The medical history of employees largely affects the premium costs. A larger number of employees with smoking or drinking habits and pre-existing illnesses will increase the premium.
If a business has a large number of women in their 20s and 30s, providing maternity benefits for them would result in a higher premium.
If the nature of work is hazardous or stressful, the premium for group insurance will be higher.
Opted policy terms
The more the coverage of a policy, the more expensive will be the bill. Additional benefits such as dental or eye care coverage will also make the plan more expensive.
If most employees already have an insurance policy, the group policy will carry lower premium costs due to reduced risks.
Policy underwriting guidelines
Insurance providers have their own guidelines when underwriting policies. They analyse various risks and a wide range of factors to decide the eligibility and coverage such that losses are minimal.
This is the cost insurance companies have to bear in case of claims. The mortality rate for a specific insurer varies with the age group and income group of the average insured person.
Insurance companies typically invest in low-risk public sector investments as per regulations of IRDA (Insurance Regulatory and Development Authority). Returns from these investments decide the premium rates set up by insurers.
Marketing and service expenses
Insurance companies spend a lot of money on marketing, advertisement, brokerage commissions, operational expenses, etc. Insurers include these expenses when drafting an insurance policy to recover the amount from policyholders.
Follow the given tips to reduce the premium of your health insurance policy:
Group medical insurance premium calculator is a convenient tool to compare premium rates from different insurance companies. This tool makes it very easy to ensure that you are getting the best deal and are aware of all the terms and conditions of a policy.
Navi offers several group health insurance policies to secure employees and their dependents against accidents/medical emergencies. Download the Navi app and avail a policy in less than five minutes.
Ans: Yes. Employers can avail tax benefits under Section 80D of the Income Tax Act on the insurance premium paid for employees. However, they will need to pay this via any medium other than cash.
Ans: No. Generally, group health insurance does not require employees to undergo medical screening.
Ans: Yes. The group medical insurance premium calculator will ask for additional details such as smoking habits, drinking habits, pre-existing medical conditions, etc.
Ans: Yes. Group health insurance policies usually provide limited coverage and cease to cover once you leave your company. So, you may also opt for an individual or family floater policy.
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