- Shop Around for Individual Health Insurance - Norbert Kaiser
Group health insurance and individual health insurance are the primary types of insurance available to people in the United States. With group health insurance a person’s employer pays a portion of the insurance in conjunction with the employee. It’s called a group plan because the rates are based on a group (the group of all employees), rather than an individual. Conversely, individual health insurance premiums are based on an individual, or the individual and their family members.
Cost of Individual Insurance Plan
The cost of an individual insurance plan to the consumer versus the cost of a group plan depends on the amount of the premium that the employer is paying. There are circumstances when the employer pays such a large portion of the insurance premium that the group plan is less expensive to the employee. However, in most cases the individual insurance plan would be less expensive.
The caveat is that individual insurance plans can be very difficult to obtain. This is because insurance companies routinely deny people who have preexisting conditions, lapses in health insurance coverage, or any other circumstance that the insurance companies view negatively. Consequently, individual health insurance providers get to “cherry pick” those who they prefer to cover.
Using a Broker to Find Affordable Individual Health Insurance
It is possible to obtain affordable individual health insurance. That said, the consumer will need to undertake a search for the best balance between comprehensive coverage and cost. Since most people aren’t insurance experts, hiring a professional for assistance is a good choice. By retaining an insurance broker, the consumer can choose between the plans they are presented with. An independent health insurance broker can sell policies from a number of different companies, which helps to eliminate the concern that they are pushing a particular brand because that’s all they can sell.
Searching for Affordable Individual Health Insurance Without Help
Alternatives to retaining the services of an insurance agent include searching for plans on the Internet, or by contacting companies by phone. When searching for insurance without an agent, be sure to check with the state agency that oversees insurance companies. Doing so will allow the consumer to determine whether the insurance company is reputable. In addition, these state agencies can provide a list of companies that are licensed to sell insurance in the state.
Also be sure to check around for different policies and prices, and then compare the coverage before committing to a plan. If possible, get insurance quotes during the research phase. Finally, be sure that the selected coverage is specific to the needs of the policyholder’s health maintenance requirements.
Cheri Pearson - Cheri Pearson is a seasoned freelance journalist who holds a Bachelor's degree in Business Administration from the University of ...
