What is it?
Similar to auto insurance, which covers your car when you are in an accident, health insurance helps you if you get injured or sick. Health insurance can also cover you if you are getting preventative care–analytic tests and doctor visits before getting sick.
Who is it for?
Medical expenses are too high to pay on your own, so inquire about health insurance. In fact, medical expenses are a primary cause of consumer debt. Health insurance is for individuals and families. One should realize one’s health care coverage could have a deductible for families and a deductible for individuals. Deductibles, coinsurance, and co-payments are three ways a health insurance company shares costs with you.
How it works?
Think of health insurance comprising a premium, a deductible, and a co-payment amount. Health insurance shares the burden of costs with you, they rarely pay for everything. The premium is the monthly amount you pay for coverage by insurance. A deductible is the amount you must pay before the insurance helps you. A co-payment is another way the insurance company splits the cost with you (after you hit your deductible). Your policy should state a maximum amount out of your pocket – until then, you will make co-payments when you receive services.
Different coverages in existence?
Several types of healthcare coverage exist including dental insurance, critical illness insurance, vision insurance, and gap insurance. The structure of dental insurance is like health insurance, having HMO’s and PPO’s. Dental insurance does what health insurance does… Smooth out the highs and lows of your cash outflow.
Major benefits of health insurance plans and dental insurance plans are prescription drugs, laboratory work, preventative care, chronic disease management, and vision and dental coverage for children. These benefits can vary from state to state. When shopping for a health insurance plan, notice the trade-off between premiums, deductibles, and co-pays. Take inventory of health issues of you and/or your family and select a plan which addresses these issues.