Health insurance is one that pays for your medical expenses. It may be when you are sick, or have a check up or are hospitalized, need medicine or special care, or anything related to medicine. It may also be insurance covering disability or long term nursing. Some governments sponsor it or you or your employer can buy it or you can even have a group insurance scheme where many people come together and buy a joint health insurance.

It is a contract signed by the insurer and the insured. There are several types of health insurance. Some may cover partial expenses while others may pay in full. Some health insurances may expect you to first foot the medical bill which will be reimbursed on your producing the payment details. You have to read properly the terms and conditions of the medical insurance before buying it.

In return for getting this facility you have to pay a fixed amount at regular intervals which is called the premium. This is decided in advance when the health insurance is signed. It is calculated on the basis of the face value of the health insurance policy and other factors which are decided at the time of entering into the agreement. By paying the premiums regularly you can be assured that you will be protected from high or unexpected medical bills and you do not have to worry about them burning a big hole in your pockets.

Some employers who buy health insurance for their employees may include the premium as a deductible amount from the pay packet. They may even pay it themselves which may be included in the annual pay package. This will ensure that money is available to pay for the health care benefits which have been mentioned in the insurance agreement. In Canada the Canada Health Act gives free access to basic health services. It is called Medicare. You can opt for private care if you want specialized services which the public health plans do not cover, like special rooms in hospitals. Canadians can also use private health care insurance for selective medical services like laser surgery, cosmetic surgery and the like.

In the United States, almost 90 percent of Americans have health insurance, either through their employers or directly. There are public programs also which cover most seniors and low income families and their children. Medicare is a federal social insurance program for seniors and some disabled people while Medicaid is administered at the state level and covers certain very low income families.