In a health insurance policy, the premium is calculated based on the sum insured, a number of people to be covered in the family, the age of the oldest person to be covered and type of policy chosen. The premium is largely determined by the age of the insured. The older you are, the higher the premium as the risk of developing health problems is higher. Past medical history will also influence premium. If there is none, the premium will be lower. With existing policies, if you have made no claims, premium discounts apply