As a general rule, you should modify or change your health insurance anytime you modify your life. Major events, such as getting marring, having a baby, and starting a new job can all affect health insurance premiums and are good reasons to modify insurance coverage. For example, quitting smoking or removing a dependent can reduce annual insurance costs greatly. If you work for a large company with multiple insurance options or you are insured individually, most health insurance changes need to be made during the period of open enrollment, which is usually limited to one month a year.

At large corporations, the human resource department is responsible for sending out open enrollment notices. During open enrollment policy holders can make changes to HMO policies, PPO policies, and flexible spending accounts. When modifying or changing health insurance coverage, policyholders should consider the deductible, prescription benefits, and policy premium. Knowing what and when to add to core coverage are important decisions that require some investigating.

When comparing health insurance plans, look into preventative care, wellness plans, and long-term disability coverage. In many cases, policies that include preventative care have competitive rates. Add-ons like disability coverage are very important for individuals who rely on their body to make a living. In case of disability, this coverage option will ensure you receive a portion of your wages to pay for living expenses.

If possible, plan in advance for changes that may occur over the next year. Not all life-changing events can be planned for, but those that can be expected in the foreseeable future should be considered in health insurance planning. If you and your spouse are planning a pregnancy in the next year, it would be prudent to select a health insurance plan with excellent maternity and pre-natal coverage.

Hobbies and extreme sports also affect health insurance rates and coverage. Modify insurance coverage if you plan on skydiving, auto racing or scuba diving over the course of the next year.

Smokers are charged higher rates for health insurance and life insurance. If you are a smoker, consider a health insurance plan that covers smoking cessation programs. Smokers can also quit on their own to qualify for discounts after one year as a non-smoker.

Major changes in your life, such as marriage or a new job, can greatly affect insurance options. When signing on with a new employer, it's important to fully consider all policy options. If you are married or plan on getting married, it pays to explore insurance rates through both employers. In many cases, couples can qualify for combined coverage, which results in overall savings.

To get the best rates, compare, change, or modify insurance coverage on a yearly basis.