Health Insurance - A General Overview

Health care is a very expensive affair in the United States and people without health care insurance pay huge amounts for basic health check up. We all need insurance for ourselves and our families for various things like dental, medical, injuries and hospitalization. We live in a world full of uncertainties and never know when we need what type of health care.

People fall sick all the time and it is something we cannot avoid even by being careful. A doctor’s visit when you do not have an insurance plan could cost you $120 and the medicines not being included in this price. A health care insurance plan directly saves you from these kinds of unexpected expenditure.

For most people the companies that they work for cover them through basic group insurance plans. However, additional coverage like dental and optical plan is not provided by them. It makes a lot of sense to invest in a good insurance plan that takes care of your family and your needs without you having to pay large amounts as a deductible.

It is quite important to understand how the insurance plans work in order to choose the right one. What is health care insurance? It is basically an amount that you pay yearly as a premium so that it covers your medical needs. The amount is broken into various parts which are identified with different terminologies. An insurance plan will consist of the following components:

Premium: An amount that is payable on a monthly or a quarterly basis in order to cover health coverage.

Deductible: A deductible is an amount that is not included in the premium but is payable when you actually seek health care. The deductible depends on the total amount incurred for treatment and the amount the insurance company would have to pay to cover your hospital bills.