Individual Health Insurance—4 Reasons You Need It

The reality is harsh: according to the U.S. Census, 47 million Americans were without health insurance in 2006—nearly one-sixth of the entire population. Even worse, AARP.org reports that 78 percent of the uninsured are employed.

If you’re not covered through your employer—and even if you are—investing in an individual health insurance policy may be the most affordable way to keep yourself properly insured. In this article you’ll find four reasons to consider investing in an individual health insurance policy.

Reason #1: You’re Not Covered at Work

It used to be that full-time employees were all but guaranteed employer-based healthcare benefits, but that tradition is quickly fading away. According to a survey by the Kaiser Family Foundation, only 60% of employers offer health insurance benefits to their employees. If your employer doesn’t offer healthcare benefits, it is imperative that you get an individual health insurance policy to protect you and any dependents you might have.

Reason #2: It’s Less Expensive Than Employer-Based Coverage

Many employees, especially those who work for smaller companies, have found that some individual health insurance policies are more affordable than employer-based plans. With employees expected to pay higher premiums and increased out-of-pocket costs in the coming years, the problem will likely get worse.

A survey by the Kaiser Family Foundation and the Health Research and Educational Trust found that 37% of employees who work in a company with three to 199 employees will pay more than half the cost of their family’s healthcare premium. As the average family healthcare premium is now $12,000, many employees at smaller businesses can expect to pay over $500 a month for a family healthcare plan.

Reason #3: Your Employer-Based Options Are Shrinking

For those who have access to employer-based healthcare benefits, the reality is bittersweet: you’re covered, but your healthcare options may be shrinking. According to the New York Times, more than 100 major companies (and hundreds of smaller ones) offer employees a high-deductible plan as a single take-it-or-leave-it option. Even if a company offers a conventional health insurance policy, high premium costs are pushing employees to choose the lowest-cost alternatives—regardless of the quality of care the plan provides.

When applying for an individual health insurance plan, you’re not tied down to a limited number of options. With InsWeb.com, shopping and comparing multiple plans can help you find a coverage level that best fits your needs.

Reason #4: You’re Not Eligible for COBRA, Medicare or Other Coverage

If you don’t qualify for COBRA or your coverage is about to run out but you’re too young to get Medicare benefits, then an individual health insurance policy could be your only option.

Whatever the case, getting an individual health insurance policy can help you gain access to affordable medical care.