Once you have decided that you are going to get health insurance, whether for yourself or for a family member, all the issues and policies involved can be quite overwhelming. Which is why it’s helpful to study basic terms and definitions first, and then going on to understanding the various types of health insurances. After all this, you can then analyze various health insurance policies and choose one that suits you or your relative’s needs best.

The health insurance policy you choose is also a contract between you and the insurance company. Before you purchase it, the kind of health care you will be receiving, the costs, and situations involved are already determined before hand and are stipulated in the Evidence of Coverage. You can choose to pay in several forms and renew the contract monthly or annually.

The fee you will be paying each month for health coverage is known as a premium. Premiums will vary depending on your need for health care, and several factors also affect this, such as marital status, age, your current health status, and your lifestyle.

Another important concept that you will be encountering is the deductible. The deductible is a fixed amount of medical expenses that you will be paying before the insurance company shoulders the rest of the amount. It works this way: if you are looking at the cost of a surgery which would be around $3,000, you will have to pay the first $500 and the insurance company will cover the remaining 2,500. Deductibles greatly vary, an the insurance company can provide you with many choices of deductibles. However, you will only pay the deductible once you receive medical care.

Other terms that you will need to know in health insurance:

• Copayment – This is an amount that you will have to pay before the policy covers the service, such as a doctor’s appointment.
• Coinsurance – A fee that you share with the insurance provider that covers a percentage of the medical services after the deductible was paid, if there was any. It is also important to note that the coinsurance rates will vary depending on the provider of the service, or if they are from providers not approved by the insurance firm.
• Exclusions – Because not every medical service is covered in a health insurance policy, exclusions are those that are not part of the coverage. In other words, you will have to fully pay for exclusions on your own.
• Coverage limits – This is the dollar limit of up to where the insurance firm will pay for your medical costs; anything that goes beyond this is expected to be covered by the insured person.
• In-network provider – Any health care provider that has been selected and approved by the insurance firm.

Now that you know the basic concepts for health insurance, you can then go on and research more about the various types of insurances and select the most appropriate one for you.