What Is Health Insurance?

Health Insurance

In a Health Insurance plan, all working people pay into a not-for-profit fund that mutualises their risk of illness and reimburses medical costs at different rates. The plan may be renewable monthly, annually, or even lifelong. In some countries, the government requires all citizens to join. These funds have a wide range of coverage and set their own budgets, though most provide a similar reimbursement rate. A Health Insurance policy also outlines what costs are covered, and may also provide a network of doctors.

Health Insurance is important, because it can cover the cost of unexpected medical expenses. If you’re not insured, health care can become an enormous financial burden. The costs can add up quickly, causing you to become bankrupt or resign yourself to a life without health care. You might also find that your health insurance plan doesn’t cover you for a particular medical problem.

A Health Insurance plan may have a deductible that you have to meet before your insurer will start paying. This deductible can range from $1,000 to $2,000, but it is usually a certain amount that you must pay before your insurance starts paying for your medical expenses. In addition to deductibles, health insurance plans may require copays and coinsurance, which are separate payments made to doctors.