When you're choosing a corporate Health Insurance plan, one of the most important things to consider is the cost of premiums. A premium is simply the amount of money that you pay for an insurance policy. However, these premiums can vary significantly based on a variety of factors. So what makes them vary so much? Read on as we outline the most relevant factors. This will help you understand what affects health insurance premiums, so you can choose the right coverage at the most affordable price. What affects Health Insurance premiums1. Age: Older people usually have to pay higher premiums because they're more likely to make a claim.2. Location: Premiums vary geographically due to differences in local healthcare costs, and how much competition there is among local Health Insurance Providers.3. Tobacco use: Smokers typically incur higher premiums because they're at higher risk of developing health issues.4. Plan category: As with all types of insurance, the level of coverage you require changes how much you pay. As you'd expect, the more comprehensive the coverage, the higher the premium.5. Extra benefits: Opting for additional benefits such as Dental Insurance and optical services care will also typically increase premiums.6. Excess: In insurance language, 'excess' refers to the amount your employee has to pay for treatment from their own pocket, before their insurance kicks in. The higher the excess, the lower the premium, and vice-versa.7. Previous claims: When you're renewing your Group Health Insurance, you may be eligible for a No Claim Discount if you haven't filed any claims during the previous term. 8. Family coverage: Insuring multiple family members under a single plan may increase your premiums, although this is not always the case.9. Health and wellness programmes: Some insurance companies offer wellness programmes, and if you take part this can lead to lower premiums. Insurers might, for example, offer discounts for engaging in healthy behaviours or completing health assessments.10. Group or corporate plans: With employer-sponsored or business health insurance plans like those via YuLife, premiums are typically lower due to the pooled risk among a larger group of employees.How to reduce the cost of Health InsuranceIf you're looking to reduce the cost of Health Insurance, there are several potential routes you can pursue.1. Increase your excess: A higher excess amount will often reduce your premium, since you're taking on more of the upfront costs. It's important, though, to choose an excess you could reasonably afford in the event of a claim..2. Accept limited hospital choice: Restricting coverage to certain hospitals may lower premiums if your health insurance provider has negotiated lower rates at these facilities.3. Reduce outpatient coverage: Many policies allow you to set lower annual limits for outpatient services such as diagnostic tests and physical therapy sessions, to reduce your premiums. But again, be wary of capping them too low.4. Skip add-ons you won't use: Dental, vision and other supplemental coverages increase costs, so only include ones your team will truly benefit from based on their circumstances.5. Maintain a healthy lifestyle: Exercising regularly, eating well, avoiding smoking and excessive drinking and managing conditions like obesity and stress can help qualify you for lower premiums with many providers.6. Partner and family discounts: Many insurers offer reduced premiums when multiple members of a household are on the same policy. So take advantage of bundled family rates if possible.7. Compare policies annually: Insurance rates change yearly, so make a note in your calendar to shop around near renewal time. This will help you find the best rates for the coverage level you need over time, rather than blindly renewing the same plan.Ultimately, obtaining the right balance between adequate coverage and affordable premiums will depend on your team’s situation and needs. Don't sacrifice too much coverage just to save a few pounds, as that could end up costing people much more in the long run. But employing smart tactics like raising the excess and embracing healthy habits can make private health insurance surprisingly affordable for businesses of all sizes to offer their employees.About YuLifeYuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work?Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.