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If you have a health insurance policy or plan to buy one, you may wonder whether your premium will increase yearly. In India, health insurance premium rates can vary based on various factors. Here's what you need to know about whether health insurance premiums increase yearly and why.

Does Health Insurance Premium Increase Every Year?

In general, health insurance premiums in India tend to increase every year. This is due to inflation, medical cost inflation, and other factors, such as an increase in the frequency of claims. Insurance companies also consider factors like medical advancements, new treatments, and increased use of technology, which can drive up costs.

However, the extent of the premium increase can vary from year to year and from policy to policy. Some policies may have fixed premiums for a certain number of years, while others may have premiums that increase yearly. It's important to read the policy documents carefully and understand the premium structure before purchasing a health insurance policy.

Factors That Affect Health Insurance Premiums

Several factors affect health insurance premiums in India, including:

  1. Age: Health insurance premiums tend to increase with age, as older people are more likely to have health problems that require medical attention.
  2. Medical history: Your health history can affect your insurance premium. If you have a pre-existing condition or have had a serious illness in the past, your premium may be higher.
  3. Lifestyle: Your lifestyle choices, such as smoking or drinking alcohol, can impact your insurance premium.
  4. Coverage: The type of coverage you choose can also affect your premium. Policies with higher coverage levels tend to have higher premiums.
  5. Location: Healthcare costs vary across different regions of India, so where you live can also impact your premium.
  6. Insurance company: Different insurance companies have different pricing structures, so the premium rates can vary based on the company.

Tips to Manage Health Insurance Premiums

While health insurance premiums are likely to increase every year, there are steps you can take to manage your premiums and keep them affordable:

  1. Choose a policy with a higher deductible: A higher deductible means you pay more out-of-pocket before your insurance kicks in, but it can also result in lower premiums.
  2. Opt for a family floater plan: Family floater plans cover multiple family members under a single policy, and can be more cost-effective than individual policies.
  3. Pay premiums annually: Paying premiums annually rather than monthly can result in savings on administrative fees.
  4. Maintain a healthy lifestyle: Living a healthy lifestyle, such as exercising regularly and avoiding smoking, can result in lower premiums.
  5. Compare policies: Compare policies from different insurance companies to find the most cost-effective option for your needs.


Health insurance premiums in India tend to increase yearly due to various factors. However, there are steps you can take to manage your premiums and keep them affordable. It's important to understand the factors that impact health insurance premiums and read policy documents carefully to make an informed decision. Remember, health insurance is an important investment in your future health and well-being.


Q. How do no-claim bonuses affect health insurance premiums in the following years?
A. No-claim bonuses positively impact your future premiums. For each year without a claim, insurers often reduce premiums or increase coverage without an extra cost. This reward system encourages policyholders to maintain a healthy lifestyle. Therefore, it's a win-win, as it supports both wellness and financial savings.

Q. Can policyholders negotiate their health insurance premiums with insurers, especially if they have a long-term relationship with the company or a history of few claims?
A. Negotiating health insurance premiums directly with insurers is challenging but not impossible. Policyholders with a long-standing relationship and minimal claim history can discuss their premiums during renewal. Insurers value customer retention and might offer customized deals. Hence, it doesn't hurt to ask, as you might secure a more favorable rate.

Q. What specific technologies or medical advancements have led to higher health insurance premiums in recent years?
A. Recent technologies like robotic surgeries, precision medicine, and advanced diagnostics have contributed to rising premiums. These advancements, while improving treatment outcomes, come with high costs. As insurers cover these new treatments, premiums adjust to reflect the increased expense. Thus, the adoption of cutting-edge medical technologies directly influences insurance pricing.