How Much Should You Pay for Health Insurance?

Health insurance has an unfortunate reputation for being expensive, but everyone needs it. It’s important for everyone to find the right health insurance policy for you and your family without paying too much for coverage.

 

Individual Health Insurance vs Family Health Insurance 

On average, family health insurance policies are more expensive than individual health insurance policies. This is because family health insurance is designed to cover more people, thus adds risk and the requirement for higher coverage limits.

 

The average cost of health insurance for an individual is around $440 a month while health insurance for a family is around $1,168 a month on average.

 

Factors that Affect Health Insurance Premiums 

Different factors can affect the cost of your health insurance. Even expensive health insurance policies are worth the cost when it comes to receiving help with expensive medical bills, but it’s important to know what is influencing your rates. 

Common factors include: 

  • Age of the insured. Rates generally rise as the policy holder ages. Children 14 years of age and younger cost a flat rate until they turn 15 years old. 

  • Location. Different states and even zip codes charge differently for health insurance. This is in part due to the health expense cost in your area. For example, the average cost of health insurance in Texas is around $374.49 a month while Vermont residents pay an average of $529.71 a month for the same health insurance. Keep in mind that rates may also change between providers, and not all providers are available in every state. 

  • Smoking or tobacco use. Smoking and using tobacco can have severe affects on your health, meaning you’re more likely to need health services. Policyholders who smoke or use tobacco often face higher premiums. If you quit smoking and notify your insurance provider, you may see a drop in your health insurance premiums after a certain amount of time. 

  • Coverage limits. Every person is different and has different health insurance needs. It’s important to consider your and your family’s specific health insurance needs to guarantee you end up with the right policy. Also be aware of common exclusions on health insurance policies. Many do not include dental insurance or cover cosmetic surgery. 

Overall, you should compare quotes in your area and consider your and your family’s health risks before purchasing a health insurance policy. Be sure to speak with an insurance agent about ways to save money on health insurance.