Common Factors to Determine Cost of Health Insurance

The rising cost of getting sick makes good health a real precious condition. Every day, as we hear news about spread of new diseases, we begin to fear being one of the victims. Even if we endeavor to avoid getting sick, the unforeseen eventuality can happen. This makes people become aware of the importance of medical insurance. The protection entails additional expense in terms of the cost of health insurance. If you do not know how to choose the low cost health insurance plan, the premiums can bore holes in your pocket.

Sometimes, even the common flu or pneumonia may require hospital confinement. And unprepared for this eventuality, your savings will just go into this. It is just a simple illness and what more can happen when the disease is cancer, heart ailment or any other illness that will require surgery? This is not simply draining your savings; high profile illness may even cause indebtedness pushing you to the limit of your financial capability.

It is understandable that the cost of health insurance can vary from one plan to another kind of coverage. Aside from the chosen benefits in the medical package, the cost of insurance can be influenced by insured’s demographic profile such as health, occupation, gender and age.
Your lifestyle practice can affect your health condition making it one of the factors that can affect the premium paid. Because of this, you will be required to undergo some health screening like x-ray, blood and urine testing. Pre-existing health conditions will be verified and you will have to fill up questionnaire on health condition. For prospective policy holders with a history of chronic ailments, further diagnosis will be recommended. This is high risk so higher cost of premium.

Drinking and smoking habits that could be detrimental to your condition will be assessed and do not be surprised if there is premium added because of this. Furthermore, age and gender matter in the computation of the cost of insurance. Older people can have deteriorated health so the premium for middle aged people is higher than those who are younger. Statistics reveals the higher life expectancy for women so males will be at a higher risk causing the premium for the latter to be higher. If your work is in the police force, army, navy and mining your health insurance plan will be computed with additional premium.

If the computation of the premium is high for your budget, you can do some other things to bring it down to a more affordable cost. Here are some tips to get the best and lower rate.

• With the internet, you can shop around for different health insurance companies and you can compare the quotations. Remember that for some companies, the rate can be negotiable so do not hesitate to ask your consultant for possible discounts.

• Opt for a managed health insurance plan like the HMO, PPO and POS. These collects lower premiums than the traditional and individual kinds.

• Purchase a major medical plan, also referred to as catastrophic health insurance which will cover major diseases only. Routine check-ups and consultations are not covered.Health insurance self employed people buy

If you are not employed but instead engage in the conduct of business, you can set up a medical savings account that will cost lower insurance premiums. You will have to go to your bank to set up this account. The plan can be a combination of medical savings account, tax-deferred savings account and high deductibles. You can also consider getting group health insurance self employed like HMO and PPO. The premiums for these are lower than the individual or traditional plans.

As medical insurance becomes priority, you have to include premium payments when setting up your expense budget. Remember that the cost of health insurance is negotiable so you haggle with your chosen insurance provider.More from my site