The rise in the cost of goods and services is a steep graph which looks at remaining so in the coming future as well. This has caused a rise in the cost of medical treatment as well and buying a health insurance is a very smart move in order to secure the future and the health of the family. It helps in providing coverage and easing the stress of finances against any sort of high medical expense that may be caused due to any sickness or injury.

The health insurance policies are designed in a way that they provide wider coverage and benefits and help ease the burden of finances that may fall upon the family during the time of a medical emergency. There are various policies regarding health insurance online that one can compare in terms of coverage, waiting period and exclusions. Another important factor that needs to be compared before selecting the most appropriate plan is the premium. Premium is usually the amount of money that is to be paid every year to the company providing the insurance so that when a medical emergency takes place and bills have to be paid; they will pay on your behalf. This can be done with the help of a health insurance premium calculator which helps calculate premium of different policies.

The calculator is an online tool that helps in determining the premium amount that will have to be paid. The calculation for this is done based on various factors which at times might differ from company to company as some have their own pre-deciding factors like the family history, age of the person getting insured and any pre-existing disease.

A pre-set template helps in calculating the premium with the help of the calculator as doing it manually can prove to be a tedious task. In order to use the calculator, there is a form which needs to be filled which includes some personal details as well. An example of the details required is as follows:

• Selecting the health option (family-floater or individual plan)
• Name of the city of residence
• Annual income
• Name of the family member who will be included in the policy
• Name
• Email ID
• Mobile number
• Current medical condition

After this you click on a button which will give an estimate quote of the premium.

Apart from this it is important to understand the various parameters which affect the calculation of premium.

• The charges that are incurred by the company for the purpose of marketing initiatives such as cost of operations, designing, promotional initiatives, advertisements and commission etc.
• There are various classifications of health policies and this is based on the specific clients it caters to. There are some salient features and coverage which is similar and overlap across the various policies. The companies put a lot of effort to carefully designing each policy so as to minimize the risk and maximize the benefits for both the parties involved.
• Age is another factor that affects premium. The higher the age, the higher will be the chances of a medical emergency or a critical illness coming into play. The expenses will automatically be higher which will push the premium also to be on the higher side.
• Past and current medical history also plays a role as someone with a history of illness or with a current critical illness will require more medical assistance which will increase the cost. This will also make for a rise in premium.

The above points will help in calculating premium for a policy.