The amount of premium to be paid by the individual for the health plan is determined by the age of the person and the health care costs required by the person. A person who is old and requires more health care has to pay more premium as compared to a person who is young and does not need to spend a lot of money on health care.

 The process of underwriting is carried out by the insurance company or the insurance agent when a person applies for an individual health insurance plan. The process of underwriting is carried out to make a background check into the age, sex, medical history and health conditions of the person so that the amount of coverage required can be determined.

Several factors are to be taken into account when an individual plan is purchased. One must be aware of the type of medical expenses that will be covered as these expenses vary from one company to another. For instance, a health plan bought may cover pre existing medical conditions whereas another one may not do so.

An individual health insurance typically provides for expenses that are incurred on surgeries, hospitalization, prescribed medicines, emergency health care, tests, x-rays visits to doctors etc. Other types of expenses may also be covered depending upon what type of plan has been purchased.