Wednesday, September 28, 2011

GROUP Insurance Can Be MORE Expensive...

Many do not know this but if the health insurance that your employer offers keeps increasing every year, you may be better off buying it on your own.

Instead of getting group insurance INDIVIDUAL insurance might be better for you.

Here is a list that helps you know if Individual Insurance will cost you less:

  • Is the past 10 years of your medical history CLEAN (no hospitalizations, no surgeries, no chronic conditions)?
  • Do you take no or only 1 to 2 medications?
  • Do you got to the doctor 6 or less times a year?
  • Are you not overweight or only slightly overweight?
  • Do you NOT smoke or use tobacco products?
If you answered yes to 2 or more of these you are a good candidate.


Insurance companies want HEALTHY people to insure. So you get a discount for being healthy. They set the rate by your health record. So if you take care of yourself, exercise and eat right you insurance premium payment is low. 

In a GROUP plan they have to ACCEPT folks that have ongoing conditions. So the coworkers you know that go to the doctor for every sniffle and sneeze are the ones that make your insurance payment higher. The insurance company sets GROUP rates by the number of CLAIMS in a year. So each time someone in a group goes to the doctor it raises the rates on EVERYONE in the group.

BOTTOM LINE you not only may be able to get a plan at a lower price but you EVEN may get MORE coverage. DON"T be scared of the individual market if you lead a healthy lifestyle... it is your friend.

1 comment:

  1. My company's health plan is expensive and has pretty lousy coverage. Why? Because so many of our “healthy” employees including myself are on our spouse's plan. Only the employees without better options remain on our plan. I have heard more than one say they probably could get cheaper coverage if they went out on their own. I’m going to provide this guideline the next time I hear that comment. I’m also shopping for my own coverage once he retires.