Health insurance is a medical insurance policy that assures financial coverage for medical expenses when a policyholder is hospitalized. Under the health care law in Switzerland, it is mandatory for all its residents to be covered under a basic health insurance policy. There are various health insurance plans readily available in Switzerland to cater to every aspect of an individual's medical needs. Health insurance policy comes packed with various features that assist an individual in managing expenses during medical emergencies. An individual pays a fixed amount of money called premium in exchange for these features for a certain interval of time to ensure that the policy remains in force. This premium is calculated based on certain important factors in accordance with the specific terms and conditions of the service provider. It is essential for a policyholder to know the factors on which the premium cost of their insurance policy is based upon. Below discussed are the important six factors that affect an individual’s health insurance premium.
Age is one of the major determinants of the health insurance premium. The cost of the premium varies based on the age of the policyholder. It is advisable to buy a health insurance policy at a younger age since the cost of the insurance premium is low for younger applicants.
Gender is another factor that impacts the cost of the insurance premium. The cost charged to females is comparatively lesser than the premium cost charged to male applicants. The cost of the premium is charged less to females due to the lower risk of stroke, heart attack, etc. Therefore, Gender plays a major role in calculating the premium charged.
3. Medical history of an individual
Medical history is another major determinant of the health insurance premium. Almost all the insurance companies in Switzerland make the pre-medical tests mandatory (after a certain age) before selling a health insurance policy. While some health insurance companies don’t make medical screening mandatory but do consider your current medical conditions, lifestyle-related health risk and medical background of the family.
Lifestyle plays an important factor in considering premium charges. If an individual smokes or drinks regularly, chances are high that the individual will be charged a more premium amount. An insurer can reject an individual's request if there are any hidden disclosures regarding lifestyle.
5. No - claim - discount
If an individual does not make any claim during the policy term, then the policyholder can earn no - claim - discount which also plays an important factor that is taken into consideration while calculating the cost of the premium.
6. Type of health insurance plan
The type of health insurance plan an individual selects also affects the cost of the premium. The higher the risk involved the higher will be the premium charged. This also applies vice-versa lower the risk involved the lower will be the premium charged. With the help of an insurance calculator, an individual can compare the price for different plans.
7. Policy term
The premium price for a three-years policy will be comparatively less than the premium price of a one-year policy plan. However, almost all insurance companies offer a discount on long term medical insurance plans.
These were the seven important factors on the bases which a health insurance premium is calculated. You can calculate your insurance premium and purchase the best available plan which suits your needs in the best possible way.