Choosing a health insurance policy is difficult enough, especially with all the dense jargon and industry terms. Getting the coverage you need means weighing a variety of factors, including all of the out-of-pocket costs and the types of services provided. To help you through the process, here are a few health insurance terms you should understand before selecting a policy.

5 Important Health Insurance Terms

1. Premium

A premium is how much you pay for insurance coverage. For most people, these are paid every month and are the first costs you see when comparing policies. However, there are a lot of other elements to consider, so a plan with higher premiums might be more affordable, depending on your needs.

2. Copayments

Every time you use your insurance, you’ll be expected to play a flat dollar amount, or copayment. For instance, you might have to pay $20 to see a general doctor, a different rate for specialists, and $10 to fill your prescriptions.

3. Deductibles

Most policies require you to pay for a certain amount of health care services, the deductible, before the benefits kick in. As a general rule, the higher the deductible, the lower your monthly premiums will be. Low-deductible plans with higher monthly premiums might be best for those with chronic medical conditions who need long-term care.

4. Coinsurance

The coinsurance of the policy is the portion of expenses you’ll be expected to pay. For instance, if your insurance plan covers 70% of the cost, your coinsurance will be the remaining 30%.

5. Maximum Out-of-Pocket Costs

Your policy limits how much you’ll have to pay for covered expenses during a certain period, not including your premiums. Once your limit has been reached, your insurer will pay 100% of your expenses until the next year.

If you need an expert to help you find the right health insurance policy, turn to the independent agents at Kalita Agency in Watertown, CT. With access to a wide range of policies from some of the industry’s best carriers and a commitment to their clients, you can be confident they’ll guide you toward a plan perfectly suited to your needs. Visit their website for more information on their health insurance services, or call (860) 274-8882 today to request a quote.