5 Tips for Buying Individual Health Insurance

By Tisha Tolar, on November 4, 2010

In the United States, health care insurance is necessary to help offset the medical expenses that continues to climb each year.  The seemingly endless rise in the cost of doctor’s visits, medications and medical procedures makes it almost impossible for even those with a decent income to afford a major accident or illness.  If you are struggling to make ends meet, a relatively minor illness or injury could devastate your finances and make it impossible to stay out of debt.  For this reason it is important for each person to make every effort possible to find and maintain a health insurance coverage.

Photo by Quinn Dombrowski via Flickr

Some people are fortunate enough to have group coverage through their employment, but many people (e.g., unemployed and self-employed individuals) do not have the same access and have to use  individual health insurance instead.

The following tips will help you in finding the best individual health insurance coverage at an affordable price.

5 Individual Health Insurance Buying Tips

Compare policies carefully

All health insurance polices are not created equally.  While most have the same basic outline, there are variations in coverage and price.  Do not assume that the most expensive policy has the best coverage or vice versa.  It is true that the better the coverage, the higher the premium, however you must closely examine each policy to ensure you are getting the protection for which you are paying.

Consider your individual needs

Do you plan on having children in the near future?  Do you have pre-existing conditions?  It is important to pick a plan that meets your individual needs.  Childbirth, ongoing treatment of existing conditions and a host of other issues may require special attention from your insurance provider.  Find out if these situations are covered or if you can purchase additional coverage to ensure your insurance offers the protection you need at the time you need it.

Research the company backing the insurance policy

It is not enough to find the best policy if the company backing the policy is not in a position to pay out on claims.  You must vet the supporting company to find out if they have the financial backing to provide the coverage for which you are paying.

Group rates for individuals

For many self-employed individuals the cost of individual health care insurance is simply too high to fit into a limited budget.  Fortunately in many states, a sole proprietor may qualify for lower group rates as an individual.  Where this is allowed, a single person can be considered as a “group of one” and benefit by having lower rates than other individual health care policies.

Some insurance is better than no insurance

Regardless of the research you put into finding affordable individual health insurance, you may find you cannot afford the type of policy that best meets your needs.  If this is the case, remember that some insurance is better than not having any coverage at all.  Consider increasing deductibles or dropping some of the coverage if it helps bring basic coverage within your budget.  Health insurance regardless of where or how you purchase it is costly.  Unfortunately if you become sick or injured and are in need of medical care or hospitalization, the cost of being uninsured becomes much more difficult to manage.

Where to Find Affordable Individual Health Insurance

A friend of mine asked the same question not to long ago. After asking around a bit, the majority of people recommended that he looks at eHealthInsurance first. In addition, you can also check these best places to get insurance price quotes to find more options. Last but not least, ask around amongst your friends and see what they recommend.

Tisha Tolar is a co-owner of Trifecta Strategies, LLC and the author of Gen X. When she is not busy being a fiction writer, she writes personal finance articles for several web sites, including Moolanomy.com.

Add Your Question or Comment (2 Comments)

1. Robert:

   November 9, 2010 at 12:14 am

   Check out Costco.com. They offer health insurance policies, and since its Costco, the rates might be good!
2. Jackie:

   November 22, 2010 at 12:17 pm

   I hadn’t heard about the “group of one” option before. How so you find out which states allow this option?