Typically you pay the average monthly cost of people with similar risk profile to yourself. Suppose the average monthly cost for nonsmoking men aged 30-35, BMI 25-27, not currently sick, is 2000 rs. Then I'll pay maybe 2100 rs (so insurance company makes a profit).
I.e., I pay my average cost, not the average over the whole pool.
If you are a smoking man aged 50-55, BMI 32-35, with diabetes, you'll pay more. You'll pay the insurance companies best estimate of your average cost, not our average cost.
I.e., I pay my average cost, not the average over the whole pool.
If you are a smoking man aged 50-55, BMI 32-35, with diabetes, you'll pay more. You'll pay the insurance companies best estimate of your average cost, not our average cost.