Health insurance protects you and your family from unexpected medical costs, but plan documents are often full of unfamiliar terms. Understanding the basics helps you choose the right plan and make the most of your benefits.
Key terms explained
- Premium — the regular amount you pay to keep your plan active.
- Deductible — what you pay for covered care before your plan starts sharing costs.
- Copay — a fixed amount you pay for certain visits or prescriptions.
- Coinsurance — your share of costs after the deductible, usually a percentage.
- Network — the providers and facilities your plan works with.
Choosing the right plan
Think about how often you visit healthcare providers, the medicines you take and whether your preferred providers are in the plan's network. A lower premium can mean higher costs when you need care, so look at the full picture.
The best plan is the one that fits your health needs and your budget, not just the cheapest premium.
Make the most of your benefits
Many plans include preventive care, such as check-ups and screenings, at little or no extra cost. Read your benefits summary and use these services to stay healthy.
Keep your documents organized
Store your insurance card, policy details and receipts in one place, and review your plan each year in case your needs have changed.
This article is for general education only. Please check your own policy documents or speak with your insurer for details about your coverage.
