According to a 2008 survey conducted by the Kaiser Family Foundation, health insurance premiums, overall, have almost doubled in the last decade. However, the rate of income increase lags way behind. Overall healthcare costs have increased so rapidly that many American families become financially devastated following just a single catastrophic health event whether they have health insurance or not.

A 2006 Agency for Healthcare Research and Quality survey reported that in close to 3 million households, nearly 20 percent of their income is applied toward healthcare related expenses, not including payment of insurance premiums. A number of these households have health insurance coverage; however the benefits do not adequately cover the healthcare needs of these families.

It is important when reviewing current health insurance coverage, or when searching for new coverage, to determine the healthcare needs of your family. If your employer does not offer a health plan that provides coverage while helping to maintain your budget, it may be time to shop for individual coverage. In either case, taking the time to establish your healthcare expenditure budget and discussing your needs with a health insurance professional can free more of your income to be saved or applied toward other expenses.