Towven.com – When you want to buy a health insurance policy you will find some types of health insurance premium with vary things provided. So what is health insurance premium ?
Alright, to answer that let’s break down the concept of a health insurance premium in a way that’s easy to grasp and, hopefully, interesting to read.
First thing, Imagine your health insurance as a safety net that catches you when medical expenses come knocking. To keep this safety net in place, you need to pay a regular fee this is what’s known as a health insurance premium.
What Is Health Insurance Premium?
In the simplest terms, a health insurance premium is the amount of money you pay to your insurance company to maintain your health coverage.
Think of it as a subscription fee. Just like you pay a monthly fee to stream your favorite shows or listen to music without ads, you pay a premium to ensure that your health insurance policy remains active.
How Often Do You Pay?
After knowing what is health insurance premium as mention above, let’s move on when this health insurance pay ? Health insurance Premiums are usually paid monthly, but some plans might offer options to pay quarterly or even annually.
Read: What Is a Deductible in Health Insurance?
This fee is separate from other out-of-pocket costs you might encounter, such as copayments, deductibles, and coinsurance (more on those later).
So, if you have a health insurance plan with a $200 monthly premium, you’ll need to pay that amount every month to keep your coverage.
Why Do You Have to Pay Premiums?
The premium you pay helps your insurance company cover the costs of the healthcare services you might need.
