Why your insurance premium increases every year
In another entry we explain how the price of health insurance is calculated in order to make known what are and what are not the circumstances and factors that are taken into account when insuring the insurance company .That is, the conclusion drawn by the company after analyzing the situation of the person who wants to take out health insurance.
Today we are going to give a further thread on this issue, because once the person contracts insurance the price can vary. What? Varying? Is not it always the same? These are questions that many people ask because they think the starting price is what they will always pay. However, this is not the case, the price may vary because from year to year the circumstances of a person change, or those of the society, or those of the collective in which he works, or ... we will see, therefore, why the premium of your Insurance increases every year.
How long have the contracted conditions been maintained?
When an insurance is contracted the agreed conditions are maintained during the time established in the contract. There are agreements for 12 months from the time it is contracted and others that end on December 31. That is, you can hire insurance in October, for example, and on December 31, because it is when the calendar year ends, a rise in premium.
This, of course, does not work well in those cases where there is an offer or if a discount has been negotiated for a certain time. It would be something like the promotions that say "during the first 6 months you will have a quota of X euros". In these cases, even if the calendar year changes, the premium remains the same. Of course, at the end of those 6 months, there may be a change from the conditions that were previously set if, as we say, we are in the following year (or not, if the conditions have been negotiated previously with the insurer).
Why does the premium increase from year to year?
If you have noticed the entry that I have told you at the beginning, which explains how the insurance premium is calculated, you will have seen that the calculation depends on many factors and is quite complex to control. Well, every 12 months, or every December 31, companies make a new calculation for whether the person's life situation has changed or if the market has changed.
All of the factors we discussed, such as age (many companies operate by age group and a client may go from one stretch to another), pathologies (it is not the same to be completely healthy at the same time. (If we talk about collective insurance and it turns out that this group has more accidents), etc., and add more variables, such as the CPI , The price of medical services and, in short, all the factors that the actuarial department studies again based on the risk and the cost to establish the new premium.
In short, it is as if every 12 months the contract was terminated and re-insured with the company for 12 more months.
How much can the premium raise?
I wish this question could be answered, but it is materially impossible. If nothing changed, the premium would remain exactly the same, or at most there would be some variation per CPI issue and if the medical services also increase the cost. But since this (that nothing changes) does not always happen with all users, it is impossible to determine what the increase will be made 12 months after the initial signature. Come on, they are not preset. No company will say "for 12 months you will pay so much and from then on you will pay so much for another".
But, do they notify you of this rise?
Of course, or at least they should. It is a grace if not, that finding a charge in the account for an amount that you did not expect does not please anybody, and when you hire health insurance you do it because you trust the services they will offer you and the last thing you He wants to start feeling distrust.
Each company can do it in its own way, but usually a minimum of two months in advance will be sent to the customer a letter that will be clearly informed of what the new insurance conditions will be and therefore , Which includes the price of the premium that will pay. At that time the person who receives the letter can choose to do nothing, and in that case the company understands that it agrees and the contract is automatically extended twelve more months, or disagree with the increase and choose to rescind the Contract and unsubscribe from the company.
For this step, to know what to do to unsubscribe from a health insurance you can read the entry in which we talk about it: How to unsubscribe from health insurance.
EmoticonEmoticon