Understanding Health Insurance Terms

What does your health plan offer you? Confused by the terminology? Here is a list of health insurance terms to help:

• Deductible: The deductible refers to the amount of money that the insured would need to pay before any benefits from the health insurance policy can be used.
• Co-insurance: This is the amount that would need to be paid by the insured before the insurance pays and in addition to the deductible.
• Co-payments: This is another term used for, or in place of, coinsurance.
• Out-of-Pocket: This is the cost one would pay out of their own pocket. An out of pocket expense can refer to how much the co-payment, coinsurance, or deductible is.
• Lifetime Maximum: This is the most amount of money the health insurance policy will pay for the entire life.
• Exclusions: The exclusions are the things that the insurance policy will not cover.
• Pre-existing Conditions: This is something someone had before obtaining the insurance policy.
• Waiting Period: This is the time one would have to wait until certain health insurance coverages are available.
• Coordination of Benefits: If the insured has available two or more sources that would cover payment for certain conditions, such being under a spouse's insurance plan along with their own, the insurance company would not pay double benefits.
• Grace Period: This is the amount of time one has to pay their health insurance premium after the original due date and before insurance coverage would be canceled.