Unlike your employer-sponsored plan offered to everyone at the same rate, private plans in most states are underwritten based on your age, weight, smoking status and health history. In some cases, applicants will have to undergo a medical exam. A pre-existing condition as common as asthma could affect your premium, while a history of anxiety or depression might cause an underwriter to think twice before insuring you. Illnesses such as heart disease, cancer or diabetes could cause them to refuse you altogether or accord you a plan that is either too expensive or include a rider that excludes the very ailment for which you need coverage. The monthly rate is based on your medical history.

Insurance rates vary from a state to state. For example, young healthy men, who are the least expensive to insure, could cost as much as $1,000 a month however there are fewer restrictions on the insurers in Florida, and premiums tend to be more reasonable for young people and pricier for older clients. In some states insurers can outright refuse to provide coverage and in such cases, consumers are forced to purchase pricy policies from a state high-risk pool. For more information on the rules for your area, contact your state insurance commission's Web site.

America's Health Insurance Plans reports that the average individual annual premiums from 2006 to 2007 is $2,613, or $218 a month. While individual plans may appear cheaper, individuals have to pay the entire premium on their own. Those in restricted states and older individuals with health issues can expect to pay up to $10,000 to $12,000 a year.

While there are benefits you can live without, others are essential and a maternity rider is one of them. Unlike employer-sponsored plans which usually cover birthing expenses, private plans don't unless you pay for it upfront. Even if you decide to start a family later on it may be too late to add it to the coverage.

Source http://www.smartmoney.com

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