What is Health Insurance?

The term health insurance refers to a wide variety of insurance policies.  These range from policies that cover the costs of doctors and hospitals to those that meet a specific need, such as paying for long-term care.  Even disability insurance - which replaces lost income if you can't work because of illness or accident - is considered health insurance, even though it is not specifically for medical expenses.

But when people think about health insurance, they usually mean the kind of insurance offered by employers to their employees, the kind that covers medical bills, surgery and hospital expenses.  You may have heard of this kind of health insurance referred to as comprehensive or major medical policies, alluding to the broad protection they offer.

How do I get Health Insurance coverage?

Health insurance is usually available through groups and to individuals.

• Group insurance is typically offered through employers to employees, although unions, professional associations and other organizations also offer it.  As an employee, group insurance has its advantages.  If you enroll when you first become eligible for coverage, you generally will not be asked for evidence that you are insurable.
• Individual insurance is a good option if you are self employed or if you work for a small company that does not offer health insurance.  Buying individual insurance allows you to tailor a plan that meets your specific needs, from an insurance carrier of your choice.  It requires careful shopping, because costs vary from company to company.