Advice

Here’s how to calculate your monthly health insurance premium

Use these easy steps to calculate what your health insurance premium should cost.

FirstQuote Health Staff
Published on
January 27, 2018
Last Updated on
May 16, 2023
Here’s how to calculate your monthly health insurance premium

If you are shopping for private health insurance soon, you may be interested in finding the most affordable health plans available, which means you need to take a look at your premium. However, there are multiple factors that can impact the cost of your insurance coverage. By understanding more about the affordable health insurance terms available to you, you can more easily identify cost-effective coverage that meets your needs.

What You Need to Know About Health Insurance Costs

When you are shopping for a new private health insurance policy, you will notice that there are multiple expenses associated with this type of coverage. Insurance premiums are one of the most expensive aspects of health insurance in many cases, but there are also other expenses that you need to pay attention to when you are shopping for new health plans.

For example, a quote for a new insurance plan will also dominantly advertise the deductible amount, the copayment amounts and other related expenses in a plan. If you are focused on finding a policy that is truly affordable for you to purchase, you need to pay attention to the insurance premiums associated with each possible insurance plan available.

What Are Insurance Premiums?

If you are focused on buying affordable health insurance, you need to understand what a premium is and how it works. An insurance premium is an up-front cost that you pay regularly to keep the insurance coverage active. In most cases, you will pay the premium monthly, but you may be able to make other payment arrangements with your insurance provider.

When you compare health insurance quotes, remember that you will pay for this expense regardless of whether you use the coverage or not. Essentially, this is the cost that you pay for the benefit of having coverage. Remember that premium amounts for various health plans can vary based on numerous factors.

What Affects the Cost of Insurance Premiums?

When analyzing the cost of premiums for private health insurance, you need to be aware of the factors that can affect the cost of your possible insurance policies. When you apply for coverage, your age and numerous health factors may be taken into consideration. For example, some providers may ask you if you are a smoker or if you have ongoing medical problems. In addition to these personal factors, your health insurance quotes will also be based on your deductible amounts, copayment amounts, and other related factors.

With this in mind, it is important that you understand what insurance premiums are as well as what other related expenses are. More than that, you need to pay attention to all factors rather than only to the insurance premium amounts if you want to find the most cost-effect coverage available. Affordable health insurance, after all, is affordable for you to pay for regularly. It also is financially reasonable for you to use the coverage as needed.

How Can You Pay for Insurance Premiums?

When you request health insurance quotes through First Quote Health, you will notice that premium amounts vary substantially. Depending on your health, age and other factors, you could find a monthly premium amount for under $300 to $400 per month to more than $900 per month. You can see that the cost of different health plans varies considerably. In many cases, those who use insurance coverage less frequently may benefit from a policy with a higher monthly premium and more expensive usage costs, such as a higher deductible and copayment amount.

On the other hand, if you frequently visit the doctor, it may make sense to pay a higher premium amount and lower out-of-pocket costs when you seek medical treatment. Many people who are reviewing health insurance quotes today may be inclined to initially buy coverage at the most affordable premium. However, you can see that a better strategy to consider when you are shopping for new coverage is to determine which policy may be most affordable based on how you intend to use the coverage over the course of the next year. Remember that most quotes for health insurance are shown on a monthly basis. More than that, you typically are required to make a monthly premium payment to your insurance provider.

Through First Quote Health, you can easily obtain quotes for insurance premiums. You do not want to purchase health insurance that is not affordable for your monthly budget, but you also do not want to purchase coverage that is too expensive for you to use regularly. By paying attention to the premium amount as well as other related insurance costs, you can more easily find coverage that can benefit you throughout the next year. By simply inputting your zip code into the form, you can see plans available in your area and related costs for each plan.

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