Common Health Insurance Terms Parents Should Know

Are you in the market for a new health insurance policy? If it’s your first time dealing with health insurance, chances are you’re a little confused by it all. You’re not alone, many people quickly get overwhelmed by all the different terms and technical information found in most health insurance policies. Luckily, you don’t have to be an insurance expert to get a good deal on your policy, but being familiar with some common terms and definitions can definitely help. Here’s a look at some common health insurance terms that you should be aware of before you shop for a policy:

Important Health Insurance Terms

• Benefits – Services included in a health insurance plan that the policyholder is entitled to.
• Co-payment – Amount of money a policyholder is required to pay to a hospital or doctor’s offices for services.
• Deductible – Refers to the amount of money that the insured must pay before they can receive any benefits from their health insurance policy. The deductible is typically an annual amount and comes into affect at the start of each year.
• Disability Insurance – This is a form of health insurance that compensates you for time you miss from work due to an injury or some type of medical condition.
• Exclusions – These are things that your health insurance policy may not cover, referred to as exclusions. Most insurance providers outline a specific set of exclusions before you ever agree to a policy.
• Group Health Insurance – A group health insurance plan refers to a policy shared among many people, usually through an employer or organization. The cost is spread among the entire group and usually offers a broader ranger of health services than individual plans.
• Individual Health Insurance – This is health coverage purchased for individuals as opposed to groups, it is typically more expensive than a group policy.
• Long Term Care Health Insurance – A long term care insurance policy provides benefits for those that require care at home, in a nursing home, or other types of assisted living.
• Network – A group of doctors or health care providers that work with specific health insurance companies. Generally, you get your medical care from the health care providers within your insurance company’s network.
• Premium – Your policy’s premium refers to the amount of money you have to pay in order to maintain coverage.
• Waiting Period – Refers to a pre-specified period of time in which you will not yet be covered by your health insurance.

Additional Resources

• What Does that Mean? Understanding Health Insurance Terms
• Collegians take Intro to Health Insurance