The number of individuals with ailments, illnesses or diseases isn’t the only thing surging. In fact, medical treatment costs have also been skyrocketing for the past few years. A minor illness or even a short hospital stay can set your finances back considerably. This is why many finance experts suggest investing in a comprehensive health insurance plan for yourself and your family.
If not all, a good health insurance plan can at least cover a major part of your hospital and medical expenses. You can reduce your financial burden significantly by simply paying a nominal amount as a premium towards health insurance. Now, before you go ahead and purchase one, you need to first get to know the amount of premium you need to pay. And the best way to do that would be to use a health insurance premium calculator.
What is a Health Insurance Premium Calculator?
A health insurance premium calculator is a free online tool designed to calculate the premium you need to pay for a health insurance plan. To use the tool, all you need to do is enter your personal information and details of the coverage you expect to receive from an insurance plan. The calculator will instantly estimate the amount of premium for a health plan based on your specified requirements.
How to Use a Health Insurance Premium Calculator?
Using a health insurance premium calculator is very simple and takes only a few minutes. Here’s a quick overview of the steps that you need to follow.
Step 1: Search for an online health insurance premium calculator.
Step 2: Visit the website hosting the said calculator.
Step 3: Enter all the required details in the respective fields.
Step 4: Submit all the details required by the calculator to instantly receive a premium quote.
It is essential to note that the process outlined above is to only give you an idea of how the calculator works. The process flow may vary slightly from one health insurance premium calculator to another.
Reasons to Use a Health Insurance Premium Calculator
Now that you’re aware of the basic steps you need to follow to use a health insurance premium calculator, let’s check out some of the key reasons why you should use one.
1. Helps Plan Your Finances
The most obvious reason for using the calculator is that it gives you an estimate of the premium you need to pay towards a plan. You can use this information to determine whether you can afford the premium payments or not before you purchase the plan. Moreover, planning your monthly budget also becomes easier once you know just how much you need to pay.
2. Very Accurate
The health insurance premium is dependent on a wide range of factors. The list of factors includes your age, gender, lifestyle habits, place of residence, pre-existing ailments or illnesses, type of coverage and the riders, among others. Since so many factors are involved, determining the premium manually can be extremely challenging, if not impossible.
A dedicated health insurance premium calculator, meanwhile, takes all of these factors and more into consideration and estimates the premium you need to pay. Although the result may not always reflect the real premiums charged by insurers, it is far more accurate than manual estimations.
3. Easy to Use and Displays Results Instantly
The ability to produce results instantly is another major reason why you need to use a health insurance premium calculator. You don’t have to wait for a long time to know your premium. As soon as you submit all the details, you get the results immediately, saving you time and effort.
Also, the calculator is user-friendly and simple to understand. Since it is straightforward and doesn't require any technical knowledge, individuals across all walks of life can use it effortlessly.
4. Helps You Pick the Right Health Insurance Plan
Since the tool is dynamic and free, you can use it any number of times to try out different combinations of the sum insured amount, tenure, and riders. The health insurance premium will change as you enter different information.
For instance, if you feel that the premium displayed by the calculator is too high or unaffordable, you can simply go back and change the sum insured, rider combination or tenure. This will give you a different result. You can continue doing this until you find the right combination at a premium you can afford.
Conclusion
With a health insurance premium calculator, you can estimate the premium you need to pay to get health insurance coverage designed for your needs and preferences. However, it is essential to note that the premium the calculator displays is only a rough estimate and may vary depending on the insurer you opt for. Therefore, always remember to compare health insurance premium quotes from multiple insurers. This will help you make a more informed purchase decision.
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