This class of health insurance is also commonly known as personal health insurance or private health insurance. Most insurance companies offering this class of insurance will refer to it as individual health insurance which can be somewhat confusing because it is not only available to individuals. If you, your spouse or your children are all on the same plan, it is sill referred to as an individual health plan. This is the type of policy you will purchase for yourself and your family if your employer does not provide this benefit to their employees. You may also consider this type of insurance if you are self-employed, unemployed or a student. These individual plans are available for age 0 thru age 65. Once a person turns 65, they become eligible for Medicare and must forfeit their individual health insurance policy.

The qualifications and regulations that govern individual health insurance may vary from state to state and from one insurance company to another. Some health insurance companies may only sell group health insurance and will not have a product available to individuals and families. The primary difference between individual and group health insurance is that the health plans available to individuals are not guaranteed issue. This means that the insurance company may turn you down for coverage based on pre-existing medical conditions. Or, they may approve you for coverage but exclude from your benefits any treatments associated with this pre-existing condition. This is what is referred to as an "exclusionary rider," which is an addendum to the standard benefits offered under the health plan that you have selected. Some states, such as California, do not permit insurance companies to place exclusionary riders on individual health insurance policies. This may seem like a good thing on the surface, but the rate of declined applications is much higher in this case because, if the insurance company is not able to exclude benefits for pre-existing conditions, they will choose not to offer you coverage.

The premiums that are charged for individual health insurance are based on several factors. These include your zip code, your age, your health status and your lifestyle habits. Smokers will typically pay more for health insurance than non-smokers, as will people that are overweight or have pre-existing conditions. Persons that are charged a higher premium are subject to this rate adjustment because the insurance company views them as a higher risk. Once you are covered under an individual health insurance policy, you may not be singled out for a rate increase based on claims history. If the insurance companies increase your rate, they must increase the rates of all existing plan members covered under the same health plan. In addition, the insurance company may not cancel your coverage for excessive claims. Your policy will have a maximum annual and maximum lifetime benefit if it is not an HMO plan. If your claims exceed the maximum lifetime benefit as defined in your plan details, the insurance company may legally cease paying benefits toward any further medical treatments. When this occurs, there would be no sense in paying your monthly premium, so you policy would terminate at that time.

There are several different types of health insurance plans available to individuals. This plan types are summarized below and more information on each plan type if available by clicking on the title. When selecting what type of health plan is best for yourself and your family, you should compare your options and shop carefully because coverage and costs vary from company to company. Individual health plans may not offer benefits as broad as those in group health plans.