For many non-insured people, the question of how much does a health insurance policy cost today can make or break their decision to pick a plan. It must be emphasized that insurance is a necessity in our times especially with the rising costs of health care.
Even if you have to take the cheapest plan with basic coverage, take it for indeed it is better to have health insurance to help shoulder the costs of medical care than to have no protection at all. Besides, many factors will affect the cost of your insurance plan such that you might be persuaded to think that indeed the premiums you pay are worth every penny.
Factors Affecting Costs
Health insurance plans are not islands unto themselves. Just like other aspects of modern life, it is dependent on varying degrees on the economic and political environment as well as on the applicant’s personal circumstances and preferences.
On one hand, economic and political factors include use of insurance plans amongst people and advances in medical science and medical technology. As modern medicine finds newer and better ways to prolong the lives of human beings, insurance costs will rise to meet the consumer demand. And with the proposed health care reform, we may see a shift towards greater burden on consumers of insurance plans.
On the other hand, personal circumstances will also affect the cost of the insurance policy. These personal factors will include:
– Age – As you age, your premiums will increase.
– Gender – Women will pay for higher premiums than their male counterparts
– Medical history – Your past and present health can either swing the favor of premiums for or against you.
– Lifestyle choices – Alcohol consumption, smoking habits, use of street drugs and obesity will affect the costs of the plan
– Place of residence – Each state has its own insurance laws especially where coverage and caps are concerned
– Types of plan preferred – Comprehensive plans are more expensive to pay for than scheduled benefits plans. Fee-for-service plans, preferred provider organizations, point-of-service plans and health maintenance organizations all have their costs.
The insurance company will evaluate all these factors before providing you with a quote.
Actual Costs
As can be expected, each individual’s insurance quotes will vary depending on the personal factors. If the 2008 figures for the United States is the basis, an average individual will spend around $5,000 while an average family of four will spend up to $18,000 on health insurance policies per annum.
Unfortunately, health insurance rates now cost more than compact cars. However, you have to remember that a compact car will not provide financial protection in times of medical emergencies, unlike the health insurance policy.
It cannot be denied that health insurance costs are on the slight rise. You may grumble about it but the fact still remains that health insurance is an essential part of modern life.