Regardless of age or position in life, health insurance reduces the financial strain of illness or injury. Even though it's a necessity, it doesn't mean you don't want to save money where you can. Fortunately, reducing rates is much more achievable if you know what impacts them in the first place. Here's a closer look at three of the most common price factors. 

What Factors Impact Health Insurance Premiums?

1. Age

Insurance providers base rates on the risk of a person filing a claim, as a person's risk of developing a chronic disease increases as they age. In fact, around 60% of adults aged 65 or older are impacted by two or more long-standing illnesses, including common problems like heart disease, cancer, and stroke. Chronic health issues require long-term treatments, which are costly. To help make up for their potentially significant expenses, insurers often charge older adults higher premiums. 

2. Family Size

Naturally, it costs more to insure multiple people than one person because you're paying for additional coverage. For that reason, couples and families with children can expect higher yearly premiums than their single counterparts. However, combining multiple people into one health insurance plan is typically more affordable than utilizing separate policies for each person; providers offer reduced rates for individual add-ons. 

3. Coverage Level

Insurance policies are split into different levels based on the extent of the coverage and potential out-of-pocket costs involved. With lower-level plans, premiums are typically low, but you face a higher deductible and maximum out-of-pocket totals. At the top of the coverage amount, the premiums are significantly higher. However, your overall financial responsibility is minimal in comparison. 

If you're an employer in the Lincoln, NE, area, keep your employees protected with assistance from Richards Insurance Agency. For over 25 years, the full-service agency has assisted businesses and residents across Lancaster County with all their coverage needs. Learn more about their selection of employee benefit health insurance packages online, and request an insurance quote today at (402) 420-5353.