Many people just coming out of high school or college may not know much about insurance. While there are a few insurance companies that insist that they get more than they need, for the most part insurance companies will be very helpful and understanding in this situation. But for those of you who like a little fore knowledge, this information will help you.
Health insurance, in a phrase, is a system intended to decrease the costs of major medical bills to the client. There is obviously more to insurance than that, but that is the main purpose. You can do a lot with that when you think about it. There are policies that can cover all medical bills, but those are extremely expensive and a lot of the time are not worth the cost of monthly premiums (seriously, do you HAVE that much cost every year). Insurance companies can also attach other expenses such as dental and vision, but if you're just out of college or high school, you're usually pretty safe without those add-ons, you can pay for those with discount services or simply out of pocket and save money in the long term.
Moving back to health insurance, how much they cover is based on how much you are willing to pay. If you want a lot of coverage, your premium (monthly bill) will raise. Before we move to the deductibles, let's give a quick definition. A deductible is the amount of money you pay towards a bill before your insurance pays anything. The higher a deductible, the lower your monthly bill will be. To lower your monthly bill, you need less coverage, and a high deductible. To raise your monthly bill, you need a low deductible, and a lot of coverage. What you need specifically depends on your situation. Note that in 2014 these standards will change.
If you are a young, healthy, single man / woman out of college or high school, you do not need to worry too much about minor bills. Checkups and preventive procedures are usually covered by most insurance companies. If they are not, you can save and pay for those yourself, add them to the insurance, or get a discount service to reduce the price without raising your insurance rates. But with a good sense of money and an emergency fund, the best plan would be to have a high deductible with insurance that only covers high cost conditions.
This system is almost always the best for people who are healthy and do not get sick often. But what about for people with disabilities? Insurance will be extremely high for anyone with a disability. If the cost is coming from medication, you might consider moving that to a discount service. This will work similar to that of a co-pay, only less paperwork. Dropping that coverage from your insurance and letting a discount service help you with the cost of prescriptions could save you thousands of dollars. If it is a physical insurance there are options out there where you could do the same thing. Either way, understand that it will cost more than insurance for the average person.
If this round about way of explaining why insurance helps you was not clear enough, here is a better less defined definition in plainer words. Insurance will always cost you money, this is fact. But if handled properly and in a way that is right for you, insurance could save you and your family hundreds of thousands of dollars.
I hope this helped you in your quest to understand insurance. Please remember that in 2014 the rules will change drastically and you may need to rework your strategy. Remember that the goal is to keep yourself covered for large expenses while saving as much as possible so you can afford to cash pay the smaller costs.