What is an insurance premium and what dictates total cost?
Insurance premiums represent the amount charged by insurance companies for active account coverage. Premiums can vary for every insurance company depending on past and present health, location, and many other factors. Normally an insurance agent or broker will factor in all the variables and let a prospect know a specific premium will cost. Group plans typically cost less because it is assumed a certain percentage of people will be in good health. For individual insurance, it is assumed someone is applying because they have increased health risks, thus driving the overall cost.
