Group Health Insurance Premium Calculator – Factors that Affect and How to Use
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.
How to use a Group Medical Insurance Premium Calculator?
Follow the given steps to use a health insurance premium calculator:
- Visit the website of the insurer to get a free quote
- Choose the number of members you want to insure.
- Enter basic details such as contact information, date of birth, age, gender, city of residence, etc.
- Answer a few simple questions regarding the lifestyle habits of group members.
- You will get a list of the best health insurance plans with an estimated premium amount.
- You can alter the coverage features to compare different insurance policies.
Benefits of Using Premium Calculator for Group Health Insurance
- Using a premium calculator, one can analyse and compare different health insurance plans to make an informed buying decision.
- By knowing the premium amount beforehand, one can plan his/her finances effectively for the future. People can choose an affordable policy and eliminate the risk of defaulting on health insurance premium payments.
- One can also filter and shortlist the premium quotes as per their requirements. Some calculators provide suggestions for certain policies as per the given data.
- These calculators offer a flexible way to adjust different variables to find the perfect mix of insured sum and premium amount.
- These eliminate the need for an insurance advisor as one can simply search for different plans at his/her convenience. This lets the customer be the sole decision-maker and eliminates any pressure to choose a certain policy or add certain benefits.
- One can know the cost of any add-ons and optional benefits and add or remove them as per his/her decision.
How is the Insurance Premium of Group Health Insurance Determined?
The following factors determine the premium costs of a group health insurance:
1. 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.
2. Medical History
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.
3. Gender
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.
4. Profession
If the nature of work is hazardous or stressful, the premium for group insurance will be higher.
5. 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.
6. Additional Insurance
If most employees already have an insurance policy, the group policy will carry lower premium costs due to reduced risks.
What Other Factors Affect the Premium of Group Health Insurance?
1. 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.
2. Mortality Rate
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.
3. Investments
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.
4. 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.
How Can You Reduce Health Insurance Premium?
Follow the given tips to reduce the premium of your health insurance policy:
- Getting a health insurance plan at an early age is a smart way to reduce your health insurance premium. As younger individuals are at a lower risk of falling sick, insurers charge them lesser premiums.
- You can opt for a higher deductible to reduce the insurance premium, especially if you have another policy that covers the rest. Deductible refers to the amount insured people need to pay before the insurance policy covers the rest.
- Insurance policies with a lower sum insured carry lower premium costs. Employers can get such policies to save a lot of money for their workforce.
- The amount of premium for multi-year insurance policies is less than one-year ones. Many insurers provide discounts for plans purchased for more than a year.
- Compare quotations from different insurance companies to ensure you are getting the best deal.
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Final Word
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.
FAQs
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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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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