A good health insurance policy is an essential part of any sound financial plan. No individual or family is truly protected from the potential financial disaster due to illness without one. Unfortunately, the cost of a first quality, comprehensive health insurance plan can be substantial. The good news is that there are simple and effective ways to reduce that expense. Especially if you are just starting with a new policy, low premiums may be a priority. Here are some things you can do to help manage the cost.

Choose a higher deductible. Health insurance premiums are arrived at on the basis of analyzing several factors including, but not limited to, your age, the state of your health, your habits, your hobbies and, very importantly, the options that you choose to add to your policy. Of those options, the deductible you select will have the greatest effect on what you pay for premiums. In general terms, low deductibles equal higher premiums and high deductibles translate to low premiums. Of all the things you can do to affect the cost of your health insurance, this is the most direct.

Increase our co-insurance. Co-insurance is the percentage of your medical bills that you are required to pay once your deductible is met. Usually that is 20%. If you raise your co-pay percentage on your health insurance policy, your premiums will be reduced. As with an increased deductible, you should consider the savings against the potential risk.

Purchase a catastrophic plan. One effective method to get low premiums is to choose a catastrophic health insurance plan. These policies offer less than complete coverage, such add office visits and prescriptions, but they do protect the policy holder from life altering medical expenses in the case of a severe, protracted illness or serious injury. The associated deductibles are high but the premiums are relatively low.

Go with an HMO. Before signing on, make sure that the health insurance plan allows you to visit doctors that you are comfortable with. Review the list of in-network doctors for the plan you are considering. If your primary doctor is part of an HMO, buy the policy. As a rule, HMO's offer low premiums as compared to PPO's. In addition, the medical services provided under many HMO plans are discounted due to the ability of the provider to obtain better rates through negotiation. This results in additional savings to you.

No dangerous hobbies. It is much easier to get low premiums if you do not participate in any dangerous activities. Hobbies like rock climbing, diving, car racing and the like, have a significant upward effect on your health insurance premiums.