4 Factors that Affect Health Insurance Premiums

Health insurance is something many people take for granted. People are careless about their policy and then get high premiums when serious illness or injury happens. 

A health insurance premium is the price of a health insurance policy that provides coverage for healthcare needs. The policyholder pays the premium in return for receiving benefits such as medical services, doctor's appointments, prescription drugs, and hospitalization expenses. So what factors affect your health insurance premium? Keep reading and we will walk you through 5 of them.

 Factors that Affect Health Insurance Premiums

1. Your Health

Your health is a predictor of how much you will end up paying for health insurance. This is why companies are interested in knowing about it. If you have a pre-existing condition and need to buy insurance on your own, expect to pay more for coverage if it isn't through an employer or government program. 

2. Your Policy Selection

Your policy selection will determine how much you pay for your health insurance policy. There are many different types of health insurance plans, and each has its own set of benefits and premiums. Some plans cover more than others, while some only cover a few things at all—and the more coverage you want, the more expensive it is going to be (or vice versa).  

3. The Economy

The economy affects the cost of health insurance and health care. As a general rule, higher inflation means higher premiums for both products. If there is an economic downturn or recession in your country, you may see even more changes than this list suggests (such as lower unemployment). In addition to the effects on premiums caused by changing economic conditions such as unemployment rates or interest rates on mortgages and loans, many policies also have evolving laws that affect them along with their costs. 

4. Your Age

Age is the most important factor in determining how much you'll pay for health insurance. Older people are likely to have pre-existing conditions, hence, the premium for their health plan is higher.

 A lot of different things can affect your health insurance.

The cost of living where you live can affect your health insurance premium. You may have to pay more for certain medical services that are available in your area, such as a dentist or doctor. For example, if you live in an expensive city like Lagos and need a new pair of glasses, it will likely be more expensive than if you live in Akure.

 The cost of long-term care where you live also impacts how much money it takes out of your pocket each month when taking care of yourself.

 Conclusion

We hope this article has given you a better understanding of how health insurance works. You can find the answers to most questions by looking online or visiting any AXA Mansard branch nationwide. But if you still have questions, don’t hesitate to contact us! We are happy to help.