Health Insurance is an insurance against loss by illness or bodily injury. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays and other medical expenses. Policies differ in what they cover, the size of the deductible and/or co-payment, limits of coverage and the options for treatment available to the policy holder.

One of the most important features of a health insurance plan is the lifetime maximum. This limit is how much the insurance company will pay out in expenses over your lifetime. Many plans have limits of 2 or 5 million. Some even have as low as 1 million, and a few plans have an unlimited lifetime maximum. Obviously unlimited is your best option.

The most common plans are group or individual HMOs, PPOs, and POS’s. The newest plan is a high deductible plan in conjunction with a HSA’s (Health Savings Accounts). These plans allow for individuals and businesses to set aside money in savings plans that grow income tax free. The money can then be used income tax free for qualified medical expenses. These plans typically work well for individuals who do not go to doctors frequently or who do not have high drug expenses.