Health Insurance

Understanding Health Insurance

It is a type of insurance cover that majorly pays for prescription drugs, surgery, dental and medical expenses of the person insured. With health insurance, you can get a reimbursement for the amount spent on an illness/injury, or the hospital can be paid directly on your behalf. Health insurance is serviced by premiums that the employer partially covers as part of the benefits package. The other percentage of the payments is often deducted from the employee’s salary.





The best thing about health insurance is that all the benefits received are non-taxable. Meaning you do not have to worry about anything being deducted in your time of need.

Who is health insurance for?

Health insurance coverage is meant for all United States citizens and eligible immigrants that need help with their healthcare expenses.

How does health insurance work?

Health insurance is arguably the most important insurance coverage you can get. Like all the other insurance covers, a contract is drawn between the insurance provider and the insured (the person taking the cover).

This contract regulates all the undertakings in the health insurance cover. Health insurance basically works by protecting your assets from potentially high medical bills that could end up wiping your entire life savings.

For your health insurance cover, you get to choose a suitable plan and pay monthly premiums to the policy provider. In the event that you have medical bills to pay, the insurance company will either pay all or some of it, depending on the agreement in the contract.

Different types of health insurance coverage

There are two main types of health insurance coverage in existence today, and they include;

Public health insurance

This is a type of health insurance coverage where the government partially or fully pays for the healthcare expenses.

Private health insurance

This refers to health insurance coverage provided by a private entity and not the federal or state government.

Benefits of health insurance coverage

• With a health insurance cover, you get the cashless claim benefit.
• Coverage against all critical illnesses.
• Coverage against medical expenses.


Even if you don’t get sick often, health insurance coverage is very important. It will protect you and your family from bearing a financial burden that arises with huge medical bills.