Advertisement

What is an insurance premium?

Dr. Michael Roizen, MD
Internal Medicine

An insurance premium is a set dollar amount that you pay to the insurer, typically on a monthly basis, so that the insurance company continues to provide benefits for the amount of time specified in your contract. Premiums can change annually, but you will be notified (hopefully!) before this happens.

In some cases (when you pay for private insurance all on your lonesome), you have to cover the full cost of the premium. However, if you have employer-sponsored health insurance or get it through a union or trade organization, you typically only have to cover part of the monthly insurance premium bill. 

If you’re not sure how much dough to cough up each month, consult your Summary Plan Description (SPD), get in touch with your benefits office, or call the insurer.

Continue Learning about Health Insurance

What short-term needs should I consider when reviewing my life insurance?
Philip Lisagor, MDPhilip Lisagor, MD
When reviewing your short-term life insurance coverage needs, you should consider: What assets w...
More Answers
Does coverage end on the dependent’s 26th birthday?
RealAgeRealAge
Coverage does not necessarily end on a dependent's 26th birthday. If you are currently covered under...
More Answers
What are out-of-network services?
RealAgeRealAge
Out-of-network services are medical services that are provided by health care professionals and/or h...
More Answers
What are consumer-directed health plans?
RealAgeRealAge
A consumer-directed health plan (CDHP) is designed to raise awareness of healthcare costs and put mo...
More Answers

Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.