A health insurance premium is the payment that you make to the insurance company for coverage. Each policy has a specific premium based on various factors, many of which you choose as part of the policy selection process. You will make insurance premium payments in accordance with your policy. Some people pay premiums monthly, bi-monthly, weekly, or even annually. You must make premium payments on time to ensure that your policy remains in effect. When you purchase your own insurance policy, you are responsible for making payments.
What Health Insurance Premiums Cover
A health insurance premium allows the insurance company to activate and put into place your insurance policy. Each insurance policy has specific details about the coverage that you receive as part of your policy. Many policies provide preventative care as part of the basic medical services that you pay for with your premium. Insurance companies want to make sure that the people they insure take steps to remain as healthy as possible. Typically, at least an annual physical check-up is included at no additional cost to the insured. Other preventative care may also be included such as vaccinations.
It is important to note that the insurance premium is in place to provide the policy coverage. You will need to pay for medical expenses throughout the year based on the provisions of your plan. You will have a deductible that you must meet annually. You will also have to pay co-payment costs when you visit the doctor. Every policy provides you with a portion of expense that you must pay. Very often, policies include 80/20 coverage. This means that the insurance company will pay 80% and you will pay 20% of covered medical care.
What You Need to Know About Insurance Premiums
Health insurance premiums are necessary to obtain healthcare coverage. You can choose from various plans that offer different options for premium costs. For example, a plan may have a low premium but might have a higher deductible. It is best for you to review the various plan options to choose the one that is best for your situation. You want to make sure that you will have the ability to get the medical care you need.
Health insurance premiums are generally tax deductible. If you itemize your taxes, you will be able to deduct premiums you paid, based on your adjusted gross income. It is important to note that you can only deduct premiums you paid, not any portion paid by your employer. You also cannot deduct premiums you paid from a medical subsidy or from pre-tax income.
It is helpful to understand your premiums before you choose a healthcare policy. At Fast Health Quotes, we offer guidance and assistance to help you find a healthcare plan that best fits your needs and budget. You don’t want to end up with unexpected expenses that you could avoid by opting for a more effective policy. Contact Fast Health Quotes today online or call us at (855) 244-9579 for all your healthcare plan needs.