When dealing with a health insurance company (or บริษัทประกันสุขภาพ), you’ve probably seen how premiums vary with age. The older the policyholder gets, the higher the insurance cost. This may be due to several factors that legally influence the cost of health insurance. These include age, location, type of plan, and household size.

Age and Premium Cost: Understanding the Link

Shorter Life Expectancy

If you understand the importance of saving for the future or retirement, you can appreciate how starting early results in bigger savings. The same concept applies to insurance of any kind.

• The earlier you take out insurance, the bigger the pay-out. Premium is also lower because you’ll have more time to pay for it.
• If you take out insurance later in life, the higher premiums you pay will help offset any potential claims.

Higher Risk of Health Problems

Your health starts to deteriorate the older you become, with some changes happening as early as 20. Imagine what your health situation will be at 50 and above.

• As you age, the more likely you’ll use your health plan. Along with increased health risk is the increased need for hospital care.
• Illnesses or injuries developed during old age tend to be more expensive to treat. Insurance providers would need to increase your premium to cover the cost.
• Remember: much of this can be alleviated by simply choosing the correct health insurance plan for your situation and needs.

More Healthcare Expenses to Cover

In addition to routine healthcare, you might need regular doctor’s visits, surgeries and treatments.

• At 40 and 50, there’s an increased risk of developing high blood pressure, diabetes, and other lifestyle-related health issues.
• To meet your growing health needs, your insurer will recommend an updated coverage from basic to comprehensive, which leads to increased insurance costs.
• After 60, long-term treatments and frequent hospitalisation are expected. Most insurers won’t accept new insurance holders in this age range. If they do, pre-existing conditions may not be covered.

Need for Add-Ons

Medical conditions tend to worsen with age. You want to reduce any out-of-pocket expenses as much as possible, but basic health coverage often excludes critical illnesses and pre-existing conditions.

• If you want these conditions to be covered right at the start, be ready to pay more than usual. Think of it as saving up for such eventualities.
• You may need to add riders or additional coverage to your plan, cranking up the cost further.

Other Causes of Increased Premiums

• Claims History: If you recently made a claim or frequently used insurance, expect the premiums to increase upon renewal. But you may get a discount if you didn’t claim at all.
• Medical Inflation: Rising cost of healthcare, coupled with your increased medical needs, can also affect premiums. From prescription drugs to medical technology, nothing really stays low-cost too long.
• Inflation: Non-health-related expenses can also impact your insurance payments. Higher food and energy cost, for instance, will increase the cost of hospital services, which your insurance has to cover.
• Population Trends: When calculating premiums, insurance companies will consider if there are more older people than young ones. They need to ensure that they won’t go bankrupt if most of the ageing population files a claim.

Health insurance is so important that Thailand requires foreign workers to get insured to access medical care. Get one while you’re still young, so you can enjoy lower premiums and better coverage. How comprehensive the coverage is will depend on a policy’s inclusion and riders. If you’re looking for flexible and comprehensive coverage, Pacific Cross has just what you need.