Knowing the Average Health Insurance Premium For Better Decision

Our health insurance market place is actually quite complex. It is not easy to breakdown the average health insurance cost into a simple figure. There are many factors that affect the health insurance premium. Let's take a look at some of the main factors in order to guide you to make better decision on selecting the best insurance cost.

Firstly, the type of health insurance affects the premium most. In the market, there are a wide range of choices of health insurance, which includes general health, job based coverage, government funded plan, individual and group policies, lady's care plan, etc. The premium costs associated with these policies differ greatly, depends on the requirements of the policy holders.

Secondly, the age of the policy holders is a key factor too. In general, the older the policy holders, the higher the insurance cost they need to bear as the assumptions made is there are certain health risks faced by certain age groups. Moreover, this factor is very closely related to the health status of the policy holders. For instance, the insurance companies normally charge higher premium for individual coverage if the policy applicants have preexisting medical conditions.

Thirdly, the rules and regulations set by different states government have a significant effect on the premium rates too. This is because most of the individual health policies and job based plans are regulated at the state level. As a result, the cost of the insurance would definitely vary from one state to another as each state has its own rules governing the premiums.

The next key factor is the coverage / benefits. The premium naturally depends on the coverage provided by the insurance providers. In general, people have a range of choices about what types of benefits they would like in their insurance plan. Some may prefer high deductible plans, some may prefer prescription drug plans, some may even prefer other comprehensive plans, etc. As a result, the cost varies from one policy to another based on the types of coverage and benefits offered.

To sum up, before getting yourself a health insurance coverage, it is very crucial for you to know how much the average premium is and what type of coverage you need to suit your requirements. Make sure you make the right choice where the benefits you are going to get is worthwhile and value for money, i.e. value for the premium you have contributed.

By Jeslyn Jessy