Whenever you get health insurance, or other types of insurance policies, you of course need to cope with insurance premium. The cost might be different depending on your risk factor. The insurance company providing you with family health insurance quote will first assess you and your family to determine your risk factor. Based on this risk factor, the insurance company will then calculate the amount of insurance premium you have to pay in order to get the insurance coverage.

Aside from the insurance premium, there are also out-of-pocket expenses that you need to cope with in order to keep your family health insurance coverage in force. We have three types of out-of-pocket expenses commonly known today, which are deductibles, coinsurance, and copayment.

Deductibles are the amount of money you have to pay to get health-related services before your insurance policy kicks in. The amount of deductibles is usually calculated on an annual basis; if you purchase a policy with $5,000 deductibles, you need to cope with $5,000 worth of medical bills each year before your health insurance policy kicks in.

Coinsurance, usually stated in percentage, is a portion of the medical bills you have to pay even after you meet your annual deductibles. If you have $100 of medical bills and your family health insurance policy has 20% coinsurance term, you have to pay $20 while the insurance company covers the remaining $80.

Copayment, on the other hand, is stated in fixed amount. It is a certain amount you need to pay for using certain health-related services. On a doctor visit – usually $20 of copayment – that costs $50, the insurance company will pay $30 while you pay a copayment of $20.