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individual health insurance | XL Financial Blog

Do You Need Individual Health Insurance?

Posted on 12. Mar, 2014 by in Insurance

The Affordable Care Act (ACA) has made it law that every US citizen is required to have individual health insurance or pay a penalty come tax time.  Each year that a person goes without coverage, the tax premium increases in an effort to encourage every citizen to buy coverage. For some, it may be more financially beneficial to skip the coverage and pay the fee. For others, the opposite is true. Here are some tips to figure out for yourself what would best benefit your individual situation:


Consider Your Health

If you suffer from a multitude of diseases and ailments throughout the year, you probably already know that you should get some kind of health coverage.  However, for most Americans, the situation is not nearly so cut and dry.  To get an idea of your overall health in an unbiased way, you may want to look over your medical bills and insurance costs for the past few years. Taking an average of the amount you spent total per year on all health costs may help you get a better understanding of your overall needs.  For those that did not spend much at the doctor, it may make sense to pay the penalty instead of the cost of insurance every month.


Consider the Cost

In nearly every situation, cost is the deciding factor.  It is very important to be able to keep up with the premiums on whatever plan you choose, because if you do not, your coverage will lapse. For those demonstrating extra need, provisions in the ACA offer tax credits that may help to partially or completely cover the cost of your individual health insurance plan.  Also, state governments continue to maintain their free healthcare systems for those who demonstrate exceptional need. You may want to consider examining the income and situational qualifications for these programs before you make a decision against signing up for coverage.

In the end, a great way to determine if you should pay the penalty or find an individual health insurance plan is to talk to the experts.  With the help of an insurance broker, you can be confident that you have made the best decision for you and your pocketbook.

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