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Frequently Asked Questions Medical Insurance How are premiums calculated ?
Frequently Asked Questions Medical Insurance How are premiums calculated ? | How are premiums calculated ? |
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| Frequently Asked Questions - Medical Insurance | |
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1) Age Bandings: - Many insurers calculate their premiums on age bandings; these can be 1 year bands, which insurer will increase your premium every year as you get older. Or 5 years which for example have a banding for 30-34, 35-39. This means that anyone in the band would pay the same premium. However, a downside to this type of banding is that once you get to the next banding in a couple of years you could have a large increase. 2) Per Group: - This means that the insured are classed in groups (i.e. single person, married couple, family or single parent) with the oldest age usually being what the premiums are based on. Also some insurers will only charge for one child, regardless of how many children you have. 3) Fixed Age at Entry: - This means that once you join a plan at a certain age, you will always pay a premium for a person that age. The premiums will still increase at your renewal date but only by medical inflation. For example if you were to join the plan aged 45, you will always pay the premium of a 45 year old even if you are on the plan aged 70. These plans are also good if you want a plan over a long term as your premium is only increased by medical inflation, which will not be large increases. 4) Fixed Premium Terms: - This means that the premiums are fixed for a certain amount of years. Such as 2 or 3 years. Some insurers will also guarantee a fixed percentage that the premium will increase by when they get to the end of their fixed premium years. For example if you wanted a plan which you could guarantee the premium over a fixed period this will be one for you. 5) Per person per age (Group Schemes): - This means that each person on the policy has their own rate. For example every year the premium will increase as you get older. |
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