Does Gender Affect Health Insurance Premium Rates?
At somewhere down the line, buying health insurance seems to be a must if I am not wrong.
Buying a policy sooner is better.
When talked about the premium of health insurance, it is determined based on the following factors:
- Age
- Family history
- Pre-existing diseases
- Lifestyle choices
- And other reasons
If anything questions the underwriting process, the premium of the policy is affected.
These days, insurance companies use a standard premium table. And this table is gender-specific and sets gender-based premium rates.
Have you ever noticed when you take a health insurance policy, the insurance company asks your age and gender?
There is a popular belief that when we get older, health insurance becomes more expensive.
And that’s true.
The older you are, the more expensive the insurance is.
Like age, gender can also affect health insurance premiums. The questions arise here:
Why does gender matter?
Why does it affect the premium?
Do Indian insurance companies set premiums based on gender?
Read on to find the answer.
Gender Factor
Health insurance is all about how intelligently you can manage health risk.
These days, gender is playing a very crucial role when it comes to the insurance sector. Owing to the risk factor, age span, and also increased gender-related ailments, separating health insurance plans based on sex are going forward at a slow pace.
According to calculations and scientific observation, gender matters much with how we live our lives.
Several reports released by WHO claim that:
- The average lifespan of a woman in India is 68.2
- The average lifespan of a man is 64.7
- The chances of stress related disorders in men are comparatively higher.
- Women are more prompt in visiting medical institutes for preventive care.
The reports show that women between 19 to 55 years of age tend to buy more health care services. This is because they are more likely to meet health experts and doctors for regular checkups, taking prescription drugs and suffering from certain chronic illnesses.
In contrast, when it comes to reckless driving and accidents, men are more prone to meet accidents. Women are believed to be a safer driver. These gender-based factors affect the insurance premium.
Maternity Care
- In crafting gender-based health insurance premiums, there might be slight fluctuations in the premiums. With regards to the time frame, increased medical expenses during the time of pregnancy are considered when determining premiums.
- During pregnancy, a long list of medical procedures comes such as gynecologist fee, regular checkups, medical tests, etc. So, the premium (if the policy covers maternity expenses) would be higher.
This is the reason, maternity coverage is not included in the basic health insurance policy. It is offered as an optional benefit in health insurance, or rider, for a hefty additional premium. Premiums for women with maternity benefits are slightly higher.
Lifestyle
As earlier said, younger women have to go through childbearing in lives, which plague several complications. That’s why the premiums may be higher in early life. But, maternity care is not just the only reason. Women have many other different health risks that men don’t have. Some of these illnesses are breast cancer and cervical cancer.
On the flip side, we cannot deny that when men grow beyond 50 years of age, they have complaints about cardiovascular and other lifestyle diseases more than women. Cardiovascular diseases concurring in men are partly because of inadequate lifestyle - such as they have poor nutrition and don’t have an active lifestyle. So, the premiums are affected in men and women health insurance policies.
Life Expectancy
Apart from lifestyle, the average life expectancy between men and women is playing a role for insurance companies to determine premiums in health insurance products too. Here, life expectancy is defined as how long a person in India is expected to live.
The good thing is that in India, most of the health insurance companies set premiums based on a lot of factors, such as age, where you live and gender. However, some insurers give priority to gender while calculating the premium. Given the health profile of Indians, age-based health insurance plans enable insurers to set premiums that reflect risks, claims and costs.
Summing Up
To sum up, many insurance companies in India have launched health insurance policies with pricing based on the sex of the individual. Many offer women-based health insurance policies that are easily available in India. In some cases, the health premium rates for men are less, and on the hand, higher in other cases.
Also Read
How to Plan Health Insurance Premiums Well in Advance to Renew the Policy?
Are Spouses Allowed to Split Health Insurance Premium to Claim Tax Benefit Under Section 80D?
In a nutshell, the health insurance premium is determined majorly based on the family history, age, city, and lifestyle of the individual. Not solely on the gender of the policy buyer.
