Understanding Health Insurance Basics

Health insurance serves as a financial safety net, providing coverage for medical expenses ranging from routine check-ups to emergency surgeries. Understanding the fundamental components of health insurance is crucial for selecting the right plan to meet your needs.

1. Premiums

Premiums are the monthly payments you make to maintain your health insurance coverage. The amount of your premium may vary depending on factors such as your age, location, and the level of coverage you select.

2. Deductibles

Deductibles represent the amount of money you must pay out of pocket before your health insurance coverage kicks in. Higher deductibles often correspond to lower monthly premiums, while lower deductibles may result in higher premiums.

3. Co-payments and Coinsurance

Co-payments (co-pays) are fixed amounts you pay for specific medical services, such as doctor visits or prescription medications. Coinsurance refers to the percentage of medical costs you are responsible for …

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