Premiums of the health and term plans

POSTED BY Beginner ON July 4, 2013 11:58 pm COMMENTS (2)

I note that health insurance premiums will need to be paid once in a year (which is coverage period) and hence they are subject to change every year – i.e. a policy of 5 lakhs which will cost 5000 now – the same policy can cost 50000 in 20 years. Is my understanding correct?

However for term plans coverage period is fixed in the initial stage like 30, 35 or 40 years and we pay premium annually  – and when they calculate these premiums, will stand same for throughout the period or subjected to change everyyear. I’m asking this because, if you say that they will be same, a term of 100 lakhs which will cost now 10000 now will be same after 25years as well??? Because of 10000 after 25 will be like 100…please clarify.



2 replies on this article “Premiums of the health and term plans”

  1. Beginner says:

    Thanks Manish – i have been trying to get a health insurance policy for mother and bother.

    i have found a few for my brother but not for my mother – see this and pls answer. Thanks.


  2. Yes. thats the way pricing happens , and thats because term plan claim comes ONCE , and health plan claims can happen every year. So thats the reason for fixed premium for term plan and revised premium for health insurance.

    I dont think there is any issue with it . You can never price a product premium in health insurance fixed . It makes no business sense .


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