Simply speaking, Health insurance (medical insurance) is a way to secure losses associated with ill health. It is one of the most common types of insurance because the majority of working people, should they become ill, cannot work and make a living to support themselves. As well as loss of income, its other main purpose is to help cover the cost of medical bills that may put a serious strain on somebodyís financial stability. If you dropped down with a debilitating stroke tomorrow and donít have the funds to take care of yourself, affordable health insurance would have been your savior.
On the other hand, like all insurance there are some people that simply cannot afford the insurance itself, let alone the costs of becoming ill. In most countries a low paying state insurance or benefit system pays out to those in that situation. In the United States they commonly use social security and medicare to help fund those without private health insurance.
Individual health insurance may be purchased by an employer looking to support their employees. It works by the policy holder or employer paying premiums or taxes to cover the costs, based on risk assessment. The premium is the amount a policy holder pays to the insurance company each month to keep the coverage going. 60% of Americans have group health insurance through their job.
Like a lot of different kinds of insurance policy, there is commonly a deductible amount applied to the policy, meaning the holder must pay out for example $500 before being covered by the health insurance plan. This might include paying for several doctorsí prescriptions, before the policy kicks in. This is a security measure that keeps health insurance companies from having to pay out on small or non serious cases that can easily be covered by the holder. For the best rates try online health insurance quotes to find cheap health insurance or get a health insurance broker.