Health insurance is a basic necessity. Otherwise you will have to shell out large amounts of money when you or a member of your family falls ill, has an accident or has a disability which needs care and medications.

Health insurance generally covers all your medical expenses. Health insurance is an agreement between the insurer and the insured. You can buy it yourself or your employer can buy it for you. Or you may have a group which buys a joint health insurance. When you are ill or need some medical assistance, health insurance will pay for it if you buy it.

There are different types of health insurance. Some may pay the entire sum of the medical expenses incurred. Others may pay up to a fixed amount while you have to cover the deficit. Still others may expect you to pay the expenses first and then reimburse it later. It depends upon the agreement which is decided when you buy the health insurance. Some health insurance companies pay only for medications, others may not agree to pay for hospitalization. Still others may pay in part for certain procedures.

Most health insurance does not pay for plastic or cosmetic surgery and the like and you have to be careful as to what is included in the contract. In return you have to pay a fixed amount at regular intervals. This is called the premium. It is calculated according to the health insurance agreement. If your employer has bought your health insurance he may decide to pay the premiums himself or may deduct it from your salary or it may be included in your pay package. All health insurances have to be renewed at specific intervals.

Almost ninety percent of Americans are covered by health insurance. There are public programs for senior citizens and families belonging to low income groups. You have Medicare and Medicaid which cater to different categories and have different options. SCHIP is a federal-state partnership which caters to the certain children and families who do not qualify for Medicaid and cannot afford private coverage.

In Canada the Canada Health Act provides Canadians with free access to basic health services. Private health insurance is allowed for services that the public health plans do not cover like private rooms in hospitals which the public services do not cover. Laser vision corrective surgery, cosmetic surgery and non basic medical procedures also come under this category.