What You Need to Know About Health Insurance

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Our goal here at Jeannie Pierce Insurance Agency is to help you get the right health insurance for your needs. For those who are new to the world of insurance, this can feel like an intimidating prospect, as the terminology can be fairly dense. To help you get started, here is a brief overview of the key information you need to know about health insurance.

What You Need to Know About Health Insurance

How It Works

First, let’s explain how health insurance actually works. One way to think about health insurance is to think of it like making a bet with the insurance company every month that you will get sick or hurt. If you are wrong that month, then the company gets to keep your money, but if you do actually get sick or injured, then they have to cover the bills. The system works because there are lots of people making these “bets”, and most of them will “lose” (meaning that they won’t get sick or hurt that month), creating a large pot that the company can use to cover the health expenses of anyone who does “win” the bet (experience a health problem).

Key Terms

Next, let’s go over some key terms you will need to know in order to choose the best insurance plan.

  • Premium – Your insurance premium is the amount you pay every month to stay covered.
  • Copay – In most insurance plans, you will still have to pay some portion of the costs of your health services. That amount is known as a copay.
  • Deductible – A deductible is the minimum amount you’ll have to pay before your insurance kicks in to cover the rest.