Health insurance protects you from potentially devastating medical costs. Understanding key terms like deductibles, copays, and out-of-pocket maximums is crucial for choosing the right plan and managing your healthcare expenses effectively.

Your deductible is the amount you pay out-of-pocket before insurance kicks in. Copays are fixed amounts you pay for specific services, while coinsurance is your percentage of costs after meeting your deductible. The out-of-pocket maximum is the most you'll pay in a year for covered services.

Consider your healthcare needs when choosing between plan types. HMOs typically have lower costs but require referrals for specialists. PPOs offer more flexibility but cost more. High-deductible health plans (HDHPs) pair with Health Savings Accounts (HSAs) for tax advantages if you're generally healthy.