Reasons behind rising health insurance premium

Health insurance is one of the most valuable forms of insurance today. After all, it is instrumental in protecting you and your loved ones from any financial liability during sickness.   

The premium for health insurance is typically decided on the basis of age, coverage, and health history. However, there has been a gradual increase in health insurance premiums recently.

Let's understand the reasons behind rising health insurance premiums and how you can plan your insurance needs.

Health insurance before COVID-19
 

COVID-19 can be seen as a milestone for the healthcare industry. There was general neglect in the attitude of individuals towards health insurance before the pandemic when a health insurance policy was considered useful for older age groups or those suffering from ailments. Many people also only bought insurance if they had a history of specific diseases in their family. However, the need and demand for health plans increased considerably after the pandemic’s onset. Today, it is a must for people across ages, genders, and susceptibilities. This is one of the reasons that has led to an insurance premium increase.

Medical cost inflation
 

The healthcare industry came out as the defender against the coronavirus. Each and every healthcare personnel contributed to community well-being when the country was grappling under the pressure of inadequate medical supplies, overbooked hospitals, and a shortage of medicines and vaccines. COVID-19 also caused a spike in other ailments, such as heart issues, stress-related illnesses, lung disorders, and more, contributing to medical inflation. A direct impact of this has been on medical insurance premiums too.

The mounting burden of COVID-19-related claims along with increased hospital visits by patients of all ages, increased the risk element for insurance companies. This burden, along with the rising inflation, has been passed on to the customer, resulting in rising health insurance premiums. 

Value of health insurance
 

Despite the apparent financial surge, it is essential to look at health insurance as an investment, not an expense. Health insurance can provide you with peace of mind, access to quality healthcare, protect your savings, and eliminate the need to add unnecessary debt. Given the health complications caused by COVID-19, buying a health insurance policy is critical in these times.

To sum it up

Whether or not rising health insurance premiums are justified is a long debate. However, considering inflation and the towering workload of healthcare personnel, the hike may be here to stay for some time. Try not to see it as an unwanted expense, and invest in health insurance plans that offer you the required coverage.

IDFC FIRST Bank offers insurance products like the Group Safe Guard- Hospicash that offers a daily cash benefit, an accidental hospitalisation daily cash benefit, and an Intensive Care Unit (ICU) cash benefit, among other features for financial protection against medical expenses. This can be a cost-effective cover option for all medical needs.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.