A few insurance sites provide their customers an option of a Health Insurance Premium Calculator, with the help of which the customers will be able to compute their premium themselves.
The health insurance premium is the amount of sum paid by an insured party to the insurance company for the insurance plan taken for a specific time span. In past days this insurance premium was computed by the authorised insurance agents manually by refereeing the plan and policy of the insurance company along with the comparative charts found by various sites. The website provides the knowledge of different premium for the ranges of products over the web. However nowadays for calculating the premium you don’t need to worry at all. Some smart way of computing the same has been invented.
Apollo Munich Health Insurance Company is one among the health insurance websites which offers online services with a health Insurance premium calculator. This website has a tie up with the Asia’s largest healthcare group and Munich Health, Apollo Group of Hospitals and Asia’s largest healthcare group newest business sector of Germany based Munich Re. However this online technique of calculating premium in a modern way with the help of a Health Insurance Premium Calculator has proved to be advantageous for the parties, the agency and its potential customers. The computation of medical insurance premium depends on the policy selected, clients’ health, age and coverage limit.
Before fixing the premium for each product all the associated expenses are fully scrutinized. Each product is designed with an intelligent thought with proper calculation and algorithm. The expenses thus include the cost of advertising and publicity for the product promotion, cost of selling of the product, investment of premium amount, cost incurred for health check-up of the clients, administration cost of the insurance programs and margin of profit.
However, it is not a simple task to calculate the health insurance premium for different policies and plans. The first thing that should be taken into consideration is the coverage ranges that mean whether the risk covers range for individual only or for a group of person. While calculating the actual premium, following aspects must be highlighted:
Firstly the health of the individual, which includes the present health status, past health record, age of the individual, medical record, family health history and personal habits like smoking or alcohol addiction. Secondly the mortality rate, it is the charges incurred by the insurance company for the life risk coverage of the individual. The charges are not fixed as it varies according to the age and health risk of the individual.
Next overhead is the regular operating expenses otherwise known as administration and marketing expenses which is very common for all the business to run its day to day activities. It covers the cost of advertisement, publicity, and cost of brochures, leaflets, pamphlets and booklets. Apart from that all the office expenses like salary and incentive to the staff and commission to the insurance agent and marketing people also come under this head. Health Insurance Premium Calculator is programmed in such a way to give a proper premium structure considering all the aspects of expenses discussed.
Certain regulatory board is there to control the activity of these insurance companies, in India it is IRDA, The Insurance Regulatory and Development Authority, situated in Hyderabad, which govern the functions of the life and non-life general insurance activity.