Health insurance

Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care and health system expenses, among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. Includes insurance for losses from accident, medical expense, disability or accidental death and dismemberment”.

A health insurance policy is:

  • In health insurance terminology, the “provider” is a clinic, hospital, doctor, laboratory, health care practitioner, or pharmacy. The “insured” is the owner of the health insurance policy; the person with the health insurance coverage.
  • A contract between an insurance provider (e.g. an insurance company or a government) and an individual or his/her sponsor (e.g. an employer or a community organization). The contract can be renewable (e.g. annually, monthly) or lifelong in the case of private insurance, or be mandatory for all citizens in the case of national plans. The type and amount of health care costs that will be covered by the health insurance provider are specified in writing, in a member contract or “Evidence of Coverage” booklet for private insurance, or in a national health policy for public insurance.

Health Insurance Can Help You Stay Healthy

Many people think of health insurance as something you use when you’re sick, but it’s much more than that. You can take advantage of the preventive services your plan offers. By visiting your doctor regularly for check-ups and getting your recommended screenings, you’re more likely to prevent more serious conditions later on. Plus, many health plans offer wellness programs and discounts on health products and services.

How to Choose a Health Plan

Picking a health insurance plan is a little like deciding on the right kind of car. Every model has different features, but what features make sense for you?

Likewise, when deciding what kind of health coverage is best for you and your family, it’s important to determine what your needs are before deciding on the type of plan you want.

Some plans protect you against major medical costs, but not the more routine services, like a checkups at the doctors. These plans are often less expensive than comprehensive plans, which protect you in the case of medical emergencies, routine visits, and they can even offer flu shots and value-added extras like reimbursement for gym memberships.