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What Is Health Insurance Anyhow?

Health insurance is – well – insurance taken out to insure you against being hit with medical expenses. In its most basic form, it’s an agreement/contract between an insurance company and you, or your sponsor (an employer) and you. There are other forms of health insurance contracts such as government-sponsored programs or other health insurance plans from private insurance companies.

In order to keep this health insurance plan active and ready to use, you pay for it every month. We’re assuming that you have already gotten some good health insurance quotes and have bought affordable health insurance; meaning affordable health insurance for your budget.

After the premium there’s the deductible. This is the chunk of change you pay out of your own pocket before the insurance company kicks in with its share. Then there is also something called a co-payment and this is the amount of money you (the insured) pay out before the health insurance company pays anything on your behalf. When in doubt, call your local insurance agent for answers to your questions.

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