Health insurance is a type of insurance where the insurer pays for the medical expenses of the insured for all cause that were mutually agreed upon. There are different types of insurance plans which cover medical services, prescription drugs, dental expenses, disabilities, etc. Usually, all these types of insurances are together termed as health insurance.

Health insurance plans are usually sold only once and renewed annually. Under most plans, the insurer agrees to pay for all health expenses as long as the insured renews his plan and pays the premium. Health insurance plans are usually of two types. One is the fee for service, while the other is managed care. Under Fee For Service plans, the insurer pays the medical service provider in advance for certain types of services that the insured takes. Under such as scheme, an insurer can go to any medical service provider. On the other hand under managed care the insurer has a set of particular medical service providers only from whom the insured is entitled to take medical advice.

Plans offered by medical insurance companies are lucrative and can tempt anyone to go for a policy. However, there are certain terms and conditions which should be understood fully before going for a policy, failing which, an insured can land into uncomfortable situations.

Deductibles form an important part of insurance. It is the amount which an insured must pay to the insurer to start getting the insurer’s service. Deductibles may vary from a few dollars to a few thousands of dollars, so it is necessary that the insured takes care of his ability to pay before getting insured.

Another thing that often causes misunderstandings is the co-insurance amount. Co-insurance amount is the amount which an insured has to pay to the insurer once the deductibles are reached.

Exclusions are to be specifically checked. There are a number of medical expenses which the insurer won’t be paying. This needs to be understood before claiming insurance.

Insurance definitely has a lot of intricacies involved which makes it a little bit confusing for people who are not acquainted with it. However, it is worth understanding as the time and efforts spend now on understanding health insurance may save your life some day.