Health insurance works like a financial agreement between you and the insurance company. You pay a monthly premium, and in return, the company agrees to cover some or all of your healthcare expenses when needed. It’s like having a safety net for medical costs, giving you peace of mind knowing that you’re protected in case of unexpected health issues.
The company agrees to pay all or some of the insured person’s healthcare costs in return for payment of a monthly premium. The contract is usually a one-year agreement, during which you are responsible for paying specific expenses related to illness, injury, pregnancy, or preventative care.
The thing is you prepay for some healthcare costs (premium) to avoid huge bills later (deductible and coinsurance). Health insurance helps manage the financial risk of unexpected medical expenses.
Is there anything specific you’d like to know about health insurance plans or how they work?
In exchange for a monthly premium, the insurance company promises to cover all or part of the insured person’s medical expenses. Typically, the contract lasts for a year, during which you will be liable for covering certain costs associated with illness, injury, pregnancy, or preventative care.