The cost of health insurance is an important topic for any Canadian. This is because the right coverage can save you thousands of dollars on health bills in the future.
Insurance is a written contract or a certificate that holds the promise of reimbursement in case of a loss or hazard. There are different insurances that serve different purposes. Today, we are going to be primarily discussing health insurance.
This type of insurance pays for medical, surgical, and sometimes dental expenses incurred by the insured person. In simpler terms, health insurance is a coverage that provides for the payments of benefits as a result of sickness or injury. It includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment.
Before we discuss the cost of health insurance in Toronto, it is important that you understand how it works. Typically, an estimate is made by the insurer of the overall risk of health care and health system expenses. Once this is done, the insurer then creates a routine finance structure that would provide the money to pay for the health care benefits contained in the insurance agreement.
The payment could be monthly or per annum, depending on what works for each person and each insurance company. The benefits enjoyed by the insurer from subscriptions are usually tax-free.
Health insurance prices may differ based on the provider. The cost may also be a function of your overall health at the time of subscription. Keep reading to find out the factors that determine the cost of health insurance.
Why You Need Health Insurance
Most people often feel like they don’t need health insurance. Hence, they try to avoid it. Sometimes they even have somewhat valid reasons to think so, especially people in their 20s who are relatively agile and people who hardly get sick. Also, people, who aren’t particularly wealthy and are running on a tight financial budget, may think it is a good idea to cross off health insurance from their budget.
However, except you have some superpowers that will keep both you and everyone in your family forever healthy and safe, you have no reason to not subscribe to a health insurance premium.
The reason is simple, the absence of insurance will cost much more in the long run than the cost of subscribing to one. If you do not have coverage for you and your family, you will singlehandedly bear the cost of any sickness or sudden injury that may occur.
Even though the option to pay for your medical expenses is available to you, you should still make sure to get health insurance instead. This is because, the lack of health insurance can make things difficult for you financially in the event of an ongoing health issue, an accident or a very serious illness. Hospital bills can pile up very quickly. Having insurance helps you shoulder that burden.
Medical emergencies are another reason why you need to know about health insurance prices. They can occur anytime and to anyone. If you have to undergo emergency surgery, you will rack up thousands of dollars in medical bills. Now, imagine having to pay for multiple medical emergencies. One can potentially become bankrupt.
All of these reasons are why you should have health insurance for yourself and your household.
The Cost of Health Insurance in Toronto
The cost of health insurance is about $2,000 on average. Of course, based on a number of factors, this number can rise to $4000 which when broken down is about $500 monthly. The average Canadian household will spend $2000 on health care costs and $4000 on private insurance premiums.
There are different types of health insurance and the cost of each one varies. In most countries like Canada and the USA, there is a health insurance program that is called Universal Healthcare. The universal health care plan allows you to visit the hospitals, see a doctor, receive treatments and also get prescriptions all under its coverage.
However, it is advisable that you get private insurance for yourself and family. In fact, it’s not as expensive as most people make it seem. The cost of health insurance for each person, directly taken from their taxes, comes to just over $1,920. When you break it down to a monthly value, this comes to just over $160 per person per month.
Factors That Influence the Cost of Health Insurance
Several factors contribute to the price of health insurance premiums. The prices you pay for health coverage are not pulled from thin air. It is the sum total of different extenuating factors.
These factors include:
- Your general health status
- Your age
- Your location i.e where you live
- State and federal laws regulating costs
- The medium through which you got your insurance
- Your insurance coverage plan
- Disease prevalence
- Increase in service price
- The cumulative increase in health care cost
- Increase in medical service utilization.
Asides the aforementioned, population growth can also determine how much you have to pay for health insurance. The population keeps growing in large numbers by the day. People are being born daily and the population is expanding, which in turn brings about an increase in healthcare spending. Depending on the amount of healthcare expenditure, your premiums may reduce or increase in value.
We are sure that you now understand why you need to subscribe to a healthcare plan. It is necessary and in your own best interest to have health insurance. Best of all, the cost of health insurance is very affordable. You don’t have to break the bank to make sure that you are fully covered.
Are you looking to get health insurance in Toronto? Perhaps you have questions about health insurance prices. Our experts are available to guide you through your insurance process. Contact us today!