The decision to drop health insurance is a difficult one. You want to make sure that you have some way of paying for medical expenses in the event of an accident or an unexpected illness. Protecting against catastrophic financial loss is a large reason why many people have health insurance coverage. Before canceling your insurance policy, you want to consider a few important factors.

If you want to drop health insurance because it costs too much, you might want to shop around. Some group health insurance policies are expensive and, particularly in the case of some small businesses, the employer requires workers to pay a big chunk of the premium. In cases where a small business is paying a high premium for group health insurance due to the high medical expenses of some of its employees, it may be to your advantage to shop around for a private health insurance policy.

If your goal is to drop health insurance while you search for a cheaper alternative, be aware that pre-existing conditions, your current state of health, and whether or not you are currently insured are all factors that many health insurance companies take into consideration when determining the cost of premiums. In extreme cases, some health insurance companies will not offer you coverage if you pose an excessive financial risk. For these reasons, you will want to make sure to first research your options before canceling your health insurance policy just in case.

One of the reasons that people drop health insurance is because they never use it. They never get sick or never visit the doctor and feel as though they are wasting money each month. If this is your dilemma, you will want to weigh the matter carefully. Car accidents do happen. Unexpected illnesses do occur. The reason for health insurance, even if you do not ever use it, is to offer protection in case of an unplanned event.

One legitimate reason for canceling health insurance coverage is if you have Medicare or Medicaid or other government-funded medical insurance coverage. Even in these cases, however, you will want to make sure that you have coverage and/or are able to afford medical expenses that may not be covered by these plans.

Another reason for dropping health insurance coverage may be that you do not subscribe to conventional medicine and prefer to use alternative treatments. Many health insurance plans do not cover services rendered by alternative practitioners. In this case, you are paying out of your own pocket and health insurance premiums may seem like an unnecessary expense. In this case, keep in mind that you might still want to carry insurance to cover diagnostic services and costly surgical procedures.