What is insurance? Why do I need it?

The truth is that we all eventually get sick and need to receive some form of medical care. Whether it is in connection with an accident, a chronic illness, or extreme case of the flu, during our lives we will need to be seen by a medical professional. But medical treatment is expensive, especially if you have to pay for your medical care entirely on your own. That is where health insurance can be of benefit to you- it protects you from the full cost of the care you need.

Health insurance is an agreement that you make with an insurance company to jointly cover the costs of your care. Your plan is the specific contract that defines this relationship and identifies who pays what towards the expenses of your care. The plan defines what doctors or providers are covered and what types of medical services are covered.

Insurance benefits are given to you by the insurer in exchange for a monthly premium that is paid whether you seek treatment or not. In addition to this premium, there is likely to be a portion of the actual costs related to the services you receive that you are responsible for paying.

Even if you have insurance, you always have the right to see doctors or receive treatment outside of this contract with the insurer, but in that case you will be completely responsible for the charges incurred.

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