Health insurance is procured by an individual to diffuse the risks of spending for his medical needs in case he gets sick. By buying a healthcare policy, the holder transfers the risk of getting sick and the subsequent expenses related to it to the insurance company. This risk is translated to an estimated amount depending on the most probable illnesses a certain age group could have in their lifetime. The estimated amount then becomes the agreed monthly premium that the policyholder has to pay in order to be able to have claims in case he gets sick and needs medical attention.

An insurance policy holder can choose what kind of payment methods and how much premium he has to pay for his health insurance. For example, he could choose to pay the premium or the full amount required of him to avail his insurance. He could also choose to pay a deductible which is the amount of medical expense he has to acquire first before he can have a claim from the insurance company. A co-payment method could also be chosen which is based on a per doctors appointment wherein the insurance company has a share in the expense per visit. Coinsurance, on the other hand, is the type where the holder only has to pay a certain amount of money from a procedure while the insurance company will pay for its half. Exclusions are the type where the holder only has claims on the ones stipulated in the contract. Finally, coverage limits are the maximum amount by which the insurance company has the obligation to pay the policyholder.

Although health insurance is pretty much common, there are still some people who choose not to avail one because of how much it will cost them. However, it is important to note that the cost of getting sick could be even more expensive than your insurance costs in the long run. It is important that before availing yourself a health insurance, that you do your research first because there are a lot of insurance companies that offer this kind of policy and they also offer different choices and quotes depending on what you really need. Also take note that it doesnt necessarily mean that the cheapest premium is the most affordable choice. Make sure to review what is included in the policy and choose the ones that you will most likely use. If you have kids, it is also smart that you include them in your policy because their medical expense is your expense as well.