- How to Save Premium Dollars on Your Family Health Insurance
- By:Thomas Richter
With health insurance premiums on the rise, if your covered by a group health plan, it may be well worth your time to take a look at an individual plan for your dependent coverage. If your spouse and child or children are reasonably healthy you may be able to save a significant amount of premium with an individual health plan.
Most people don't realize, but an employer contributes a significant amount of premium towards the employee coverage under a group health plan. However, with premiums on the rise, employers are paying less and less towards the dependent coverage. In many cases they are paying little or no premium towards your dependent coverage.
If your spouse is relatively young and healthy, you can most likely save premium with an individual plan. Group rates are usually higher than individual rates since they insure the healthy along with the not so healthy. Group rates are also usually averaged for the entire group. Therefore, if the average age of the group is say 45, then the average rate will be based on someone that age.
If you have a small family of 3 or less children, then you may benefit by moving your children to an individual plan. This is because most group plans offer one rate for children, whether you have one or ten! Most companies sets an average rate based on coverage for about 3 children.
Unlike group plans, coverage with and individual is not guaranteed and neither are the rates. You have to be medically underwritten and the outcome can vary greatly. For applicants with medical conditions, the insurance company can:
1) increase rate;
2) issue an exclusionary rider;
3) increase rate and issue an exclusionary rider or 4) decline coverage all together.
If you live in Texas and would like to see if you can save some premium by switching to individual coverage, visit my website for fast free online quotes from 5 top rated insurance companies. Visit http://www.advanced-benefits.com and click on the "Get Started" button.