Insurance, in general, refers to protection from monetary loss. An individual or firm will get coverage through a contract with an insurance company. In return for monthly/annual payments, you will be assured of financial reimbursement by your insurer if you incur financial loss. Health insurance, then, is a type of coverage that caters to costs incurred through health care.

Family medical insuranceWhat Does It Cover?

It is worth noting that health coverage doesn’t just cover medical procedures. Depending on what plan you settle for, your coverage could also include outpatient care, post maternal care, preventive services, prescription drugs, vision, dental, travel, life cover, and disability.

Types of Health Insurance

Medical coverage can be broadly grouped into private and public health coverage.

1.  Public health insurance is typically run by the national government or some form of local authority. The premiums for public health insurance are lower than most private owned insurers.
2. Private health insurance could be individual, family, children’s, joint or (employer’s)group coverage. This type of insurance is provided financially for profit; they have little to no affiliation with the government or its plans. Individual coverage is the most common type of insurance. It is underwritten to cover one individual’s medical care needs. Family Private Medical protection covers members of a family, usually at a discount. Children’s insurance is underwritten to cover children’s medical care needs. Joint private medical protection covers two policyholders at the price of one. It is ideal for couples or friends looking to cut costs. Employer’s group private insurance is usually provided by your employer (though not compulsory) as an employment benefit. Employers can get discounts from insurers as they register many policyholders at a go.Each of the stated examples has their different plans and descriptions depending on the institution you choose to work with.

Health Insurance Plans

Health insurance thru employers• Health maintenance organization
This plan only provides medical cover through healthcare specialists. The policyholder does not pay directly for services to healthcare providers. Instead, your insurer pays a set premium to medical providers in its HMO network. Some services require copayments. For example, if your doctor’s visit costs $200, you’d be needed to pay a fixed amount of $30 while your insurer will foot the rest of the bill.

• Indemnity plans
The policyholder is free to visit any doctor of their choice. After the procedure, the doctor or health center will then seek reimbursement from your insurer. The insurer pays for at least 80 percent of the bill while the policyholder is expected to foot the remaining 20 percent in a system called coinsurance.

• Preferred provider organization(PPO)
The insurer puts together its preferred pricing and invites health care providers willing to work for those prices to join the PPOs network of vendors. The policyholder is free to seek health care within members of the network.


The greatest benefit of any medical insurance plan is that it lowers the cost of accessing regular health care and reduces the load that comes with emergency medical operations.It also gives one peace of mind when unplanned medical emergencies occur.