A premium is the amount you pay regularly — usually monthly — to keep your health insurance policy active. Your premium is owed whether or not you use any benefits during that period. Premium amounts are determined by factors including your age, province of residence, the level of coverage you select, the number of people covered (individual, couple, or family), and in underwritten plans, your health status. Insurers can change premiums at renewal. For self-employed individuals, premiums may be deductible as a business expense if they meet the CRA’s conditions; otherwise they can count toward the medical expense tax credit. Group plan premiums are often shared between employer and employee. If you stop paying premiums, your coverage will lapse after any applicable grace period.