How much should you budget for health insurance?

There's no universal "right" number, but there is a useful framework. Most households we work with land between 6% and 12% of gross income for health-related costs, including premium, expected out-of-pocket, and dental/vision.

Build your number in three steps

• Estimate the predictable: premium + any standing prescriptions or therapies.
• Add a buffer: half of your deductible is a reasonable annual-cost assumption for an average year.
• Plan for the catastrophic: know your max out-of-pocket and confirm you could cover it in a worst case.

When life changes mid-year

A new job, a baby, a marriage, or a move all open a Special Enrollment Period. You don't have to wait until November — but you usually only have 60 days to make the switch.