Insurance Awareness - Health Insurance
Which of the following statements about health insurance premiums is correct?
Which of the following statements about health insurance premiums is correct?
medium Q7 of Q15
Step-by-Step Solution
Step 1: Understand premium factors in health insurance
Premiums generally increase with the insured's age and presence of pre-existing conditions due to higher risk.Step 2: Analyze options
Premiums may increase with age and pre-existing health conditions correctly states this. Premiums are fixed and do not change with age or health condition is incorrect as premiums vary. Premiums are refunded if no claim is made during the policy term is incorrect as health insurance is not a savings plan. Premiums are paid only once at the time of policy purchase is incorrect as premiums can be paid annually or in other modes.Final Answer:
Premiums may increase with age and pre-existing health conditions → Option CQuick Check:
Premiums reflect risk, confirming Premiums may increase with age and pre-existing health conditions is correct.
Quick Trick: Remember premiums depend on risk factors like age and health.
Common Mistakes:
MISTAKES- Assuming premiums are fixed or refundable like investment products.
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