What is a Health Insurance Premium?
Unless you are automatically enrolled in health insurance through your employer or a family member, chances are you will need to choose what policy to get. If that is the case, you will definitely run into this term, premium.
What Is a Health Insurance Premium?
When you take out a health insurance policy, you agree to pay a certain amount every month (depending on the agreement) in exchange for coverage.
This amount is called a premium.
As long as you are paying this premium, you are assured of health insurance coverage. When you stop, however, if you let your payments lapse or you close the policy, your health insurance coverage will stop.
What are the Different Ways I Can Pay My Premiums?
First, you have the option to decide the rhythm of payment (depending, of course, on your provider). Many agree to a monthly payment. Other providers, more cautious and hoping to lower their risk, can even ask for it quarterly, or twice or once a year.
Second, you have the option to decide how to pay. The most efficient way, of course, is to have them auto-deduct the amount from your bank account. But if this is something you would rather not do, you need to think it through. It would be inconvenient to lose health insurance over a missed premium payment.
Is It Just About the Lowest Price?
The health insurance premium is never just about the lowest price. Every time you go to a health care provider and talk to them, remember that the premium is their selling point. Any other benefits and perks they add is part of that sales talk.
Instead, when considering a health insurance premium, line up all your options with their prices, policy inclusions and perks, and other payment details, like deductibles and coinsurance or co-payment. Then, after another quick look at your lifestyle, decide which policy and premium would be best for you.