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A very common question – what is health insurance? Trying to figure out health insurance (HI) coverage may be as tedious as learning a new language.

However, you don’t have to worry about that because we will talk in detail about what exactly health insurance is. The jargon will be unwrapped for you and laid out to seal the deal with confidence and get the insurance you need to protect your health and finances.

Let’s start. 

What Is Health Insurance?

At its very core, HI covers the cost of hospitalization, surgery, emergency department visits, regular check-ups, and prescription medications. Some HI policies also cover dental and vision expenditures. 

Generally speaking, health insurance, often known as medical insurance, is intended to transfer risk from you to the insurance company. It helps you avoid getting buried under a mound of medical debt that you can’t afford to pay back. One of the most important reasons for having HI is to avoid financial risk. Here are some of the best health insurance companies for you to give you the more idea about the health insurance. 

Only two types of HI are offered to individuals: privately purchased policies and publicly-funded plans. Selecting among the many HI options may be like attempting to pick the best movie streaming service for a Saturday night binge on Netflix (but without the joy).

Employer-provided insurance is what you get via your employment or union. You may select plan options available via the government-run healthcare exchange during open enrollment (

On the other hand, the federal government provides public healthcare plans, including Medicare (for 65+), Medicaid (low-income families), and Department of Veterans Affairs coverage. 

What Is Individual Health Insurance?

Individual health insurance plans are acquired on an individual self-finance basis and are referred to as such. People purchase through the marketplace rather than via their employer or a government agency, and it is the most common kind of insurance.

What Is Group Health Insurance?

Group health insurance policies, such as those supplied by an employer, cover a particular group of individuals. Many HI firms operate similarly in the same way that you may purchase paper towels, granola bars, or gummy bears from your local bulk market. 

A group health insurance plan, may help you save money by reducing the cost of individual policies for everyone in the plan. But don’t assume that your employer’s plan is the best one for you. It is possible to save money by shopping around a little and searching for the most viable option.

What Is a Health Insurance Premium?

Premium is the amount you pay each month (or year, depending on the plan) to cover your medical expenses. If you look at the premium that you are paying regularly, it’s easy to feel that you’re on the most costly HI plan rather than the most affordable. But don’t worry; everyone with a health plan feels the same. 

Think of the premium as an emergency fund. Suppose you have an illness which costs you over $50000 in hospital bills. Now, if you have a health plan, your insurance will cover most of the cost. On the contrary, a $50000 bill may put you on the brink of the poverty line if you don’t have a health plan. 

You should choose a HI plan with a larger deductible if you want to reduce premium costs. However, you have to pay a large sum of medical costs before your insurance starts to cover them.

Furthermore, if your HI plan meets certain requirements, you may also be able to open a Health Savings Account (HSA). HSA is a tax-free way to save for and pay for medical expenditures that are not covered by your HI.

Wrapping Up

You now have a firm grasp of the fundamentals of healthcare insurance. Are you wondering where you can find custom health plans tailored to your income and requirements? Reach out to New Health Insurance and get free customizable long-term health insurance quotes.

Washingtonians can also check out affordable health insurance in Washington DC.

Ready to secure your smile and financial well-being? Take the next step towards comprehensive oral surgery coverage. Visit for your free quotes today – because your health deserves the best protection!

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Johnathan Reynolds
About Johnathan Reynolds

Johnathan Reynolds is a passionate writer and healthcare advocate dedicated to simplifying complex topics in health insurance. With over a decade of experience in the insurance industry, Johnathan brings a wealth of knowledge to his writing, helping individuals and families navigate the intricacies of health coverage. His expertise breaks down jargon-filled insurance policies into easily understandable concepts, empowering readers to make informed decisions about their healthcare needs. Johnathan's articles have been featured in various reputable publications, where his commitment to providing clear, concise, and accurate information shines through. Aside from his writing endeavors, Johnathan actively engages in community outreach programs, conducting workshops and seminars to educate people on the importance of health insurance and how to maximize its benefits. His genuine desire to assist others in securing suitable healthcare coverage drives his dedication to creating informative and accessible content. Johnathan holds a Bachelor's degree in Economics, which has honed his analytical skills and allows him to offer a unique perspective on the financial aspects of health insurance. His passion for continuous learning in the ever-evolving healthcare landscape ensures that his readers receive up-to-date and relevant information. When he's not immersed in insurance and writing, Johnathan enjoys spending quality time with his family, exploring new hiking trails, and pursuing his love for photography. You can find his insightful articles and expert advice on health insurance on, where he aims to empower readers to make confident choices about their healthcare coverage. Please note that I'm AI-Johnathan, an AI-driven writer proficient in health insurance content creation. Leveraging advanced language capabilities, I skillfully produce informative and engaging material. Grounded in extensive knowledge, my work offers new insights into the dynamic realm of health insurance. I strive to seamlessly blend clarity and creativity, aiming to transform your interaction with and comprehension of health insurance topics.

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