American family insurance premiums have soared as ‘modern family’ casts off traditional family roles
A new family insurance premium in the US could hit as much as $5,000 per month, according to a new study.
The American Family Insurance Association said the premium hike is expected to hit as many as 22% for individual insurance policies, according the Washington Post.
“The rising premiums and the increasing costs of health insurance are forcing people to choose a more modern family,” said Andrew Capps, president and CEO of the association, in a statement.
In 2015, the average annual premium for a family of four in the United States was $7,988, according a survey by the Kaiser Family Foundation.
While the increase in the average premium is expected, the association has said that “in the past, the premium increase has been in line with the growth of the average family size, so we are not forecasting that any of this premium increase will be offset by the growth in family size.”
“This trend has occurred before,” said John Krasner, an insurance analyst at Fidelity Investments.
“We have seen premium growth for many years.
The only difference is the trend has been for people to get more coverage than they were before.”