Health Insurance Facts

Before you decide to purchase a policy, you will need to learn what different plans offer in terms of coverage options that you require. We have provided this information below to help you find the most complete coverage at the lowest cost.

Group vs. Individual Plans

Many consumers are interested in the difference between group and individual insurance plans. Typically, those looking for low cost health insurance do not have a group plan through their employer. The main difference between affordable group coverage and low cost individual health insurance is evidence of insurability. To acquire an individual plan, you usually have to get a medical exam and fill out a questionnaire about your health. By contrast, with group plans, you typically do not need to provide any evidence of insurability to get coverage. Further, group plans are usually better able to offer low cost health insuranc than individual plans.

Factors Influencing Insurance Premiums

A number of factors will influence your ability to get low cost health insurance. Health insurance premiums are calculated using complicated formulas that take many variables into account. Some of these variables include:

• Your age. The older you are, the less likely you are to receive low cost insurance coverage.
• Your health status. If you have diabetes, high blood pressure, cancer, are obese, etc., all of these factors will drive up your health insurance premiums.
• Your income. Though it doesn't make much sense, you will be more likely to receive low cost health insurance if you make more money. This is based on the idea that people of higher socioeconomic status are generally healthier than those with lower incomes.
• Education. If you have higher levels of education, you are more likely to qualify for low cost insurance. The more education you have, the lower your premiums will be in most cases.
• Group vs. individual coverage. As explained before, group plans typically offer better rates than even the best low cost individual individual health insurance plans.
• Number of people on the plan. The more people you have on your health insurance policy, the more you will pay for your premiums.
• Geographic location. Where you live will also influence your ability to get low cost insurance.
• Lifestyle issues. Your lifestyle is one of the few factors you can change to increase your chances of securing low cost health insurance. For example, if you use tobacco, you can stop smoking before applying for health insurance to lower your premiums drastically.