The Premium is the amount paid for health insurance coverage for a specific period of time. You may wonder why your group health insurance payment through your employer was so much less expensive than buying insurance on your own. The answer is not that the group rate was so much cheaper, but that your employer was making part of your payment as a contribution.

So what should you look for with regard to premiums as you shop for insurance? Just as is the case with any type of payment, be certain that you can meet the arrangements. Most companies will offer an automatic draft which will eliminate any worries that the payment will be late, resulting in a lapse of coverage. In the case of employer-based insurance, the premiums will be automatically deducted from payroll. Be certain that you understand how often these deduction will occur as well as the total amount. Employer-based policies are typically figured on a “per pay period” basis.

Remember that you have the option of taking out COBRA insurance if you leave your job, though the policy will likely be much more expensive than you were paying through your employer because your employer’s contribution is now your responsibility.