Insurance Basics

Every plan is described with the same vocabulary.

• Premium — what you pay monthly to stay covered.
• Deductible — what you pay before coverage starts.
• Copay / coinsurance — your share of each bill afterward.
• Out-of-pocket maximum — the annual ceiling on your total spend.

Cover the losses you could not absorb yourself.

• Health — required in practice; one hospital stay outprices years of premiums.
• Auto — legally required if you drive.
• Renters or homeowners — cheap, and covers theft, fire, and water damage.
• Disability — replaces income if you can't work; more likely to matter than life insurance in your twenties.

A low premium with a high deductible works when you're healthy and hold savings equal to that deductible. If you expect regular care, a higher premium with a lower deductible usually costs less overall.

Stay in-network whenever possible, ask for an itemized bill, and appeal denials in writing — a large share of denials are reversed on the first appeal.

Common questions