The motto underlying practically any kind of general insurance is that prevention is better than cure. The more you do to lower the risk of making a claim, the less the insurer needs to charge and the lower the price of the premiums you may typically pay.
This is just as true with private medical insurance (also known as PMI) and might go a long way to making sense of health insurance quotes.
Pre-existing medical conditions
Although any health insurance quote you receive takes into account your age, where you live and the level of services for which you want cover, one of the principal determinants is the extent to which you have any pre-existing medical conditions in your history.
The insurer’s reasoning is clear – if you suffer or have suffered from particular medical conditions in the past, there is a greater risk of a recurrence or the development of complications sometime in the future. The relationship between risks and premiums is explored in considerable detail in a paper contributed to Health Knowledge in 2017.
The insurer’s response is either to increase the cost of the premiums you need to pay or to exclude future treatment of pre-existing conditions, depending on the type of health insurance you arrange:Continue Reading