One thing that all Americans need to have is health insurance. Without insurance in place, you could end up spending thousands on the healthcare you need.
However, with such diverse premiums being offered by lenders across the country, it can be challenging to know how much you should spend on health insurance.
What is the average cost of health insurance in the United States?
According to Investopedia, the average cost of health insurance for a family of four is $20,756, yet 71 percent of this cost is picked up by employers.
So, what about the costs when taking out an individual plan? Well, location can make a massive difference when it comes to the rates that are in place.
For example, the lowest premiums found are in New Mexico, with the average being $282 for a year’s plan for a 27-year-old. The most expensive is in Wyoming, where it would cost a 27-year-old $723 on average for a year of health insurance.
Many factors impact the cost of health insurance
You may be wondering why you have been quoted more than your next-door neighbor for life insurance! The truth is that many different factors can influence how much you end up paying for this policy.
Some of the different factors that influence the quotation you are given are as follows:
- Location – As mentioned, your location has a massive impact, with averages differing by hundreds of dollars from state-to-state.
- Your health – Your health will have a massive impact on the premiums you are quoted, as this has a direct effect on how much of a risk the insurer views you as. If you have any pre-existing conditions or you are a smoker, you can expect to pay more.
- You age – The older you are, the more expensive you can expect your premiums to be. Again, this is because insurance companies view you as a greater risk.
- Your income – If you are on a low-wage, you will usually pay more through employers, but subsidies can mean you pay less overall, so it all depends on your individual circumstances.
- State laws – Your health insurance premiums will also be impacted by state laws, as they dictate how much insurers can charge and what policies must cover.
- The policy you choose – Finally, the type of health insurance plan you choose will play a role. If you select a comprehensive policy covering everything from eye care to dental visits, you will pay more than someone who has a basic policy for medical emergencies only.
Contact us today for more information
If you need further help in choosing the right health insurance plan for your needs, please do not hesitate to get in touch with LSI Insurance for more details.
We have many years of experience in the industry. We have helped many people to get the medical insurance plan that is right for their health requirements and budget. We’d love to take care of you next!