Health insurance is a contract where an insurer pays some or all of a person's healthcare costs in exchange for a regular premium, covering expenses like doctor visits, hospital stays, and prescription drugs.

The main benefits include financial protection against high medical bills, ensured access to quality medical care, coverage for preventive services, and overall peace of mind regarding unexpected health challenges.

Common types include HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), POS (Point of Service), EPO (Exclusive Provider Organization), and HDHP (High-Deductible Health Plan).

An HMO typically requires you to choose a primary care provider (PCP) for referrals within its network, while a PPO offers more flexibility to see specialists without a referral, both in and out-of-network (though in-network is cheaper).

HDHP stands for High-Deductible Health Plan. Its main characteristic is higher deductibles but generally lower monthly premiums, and it's often paired with a Health Savings Account (HSA).

When choosing a plan, you should consider your budget (premiums, deductibles, co-pays), your typical healthcare needs, whether your preferred doctors are in the plan's network, and the coverage for prescription drugs.

Yes, many health insurance plans cover preventive care services such as vaccinations and screenings, helping individuals stay healthy and detect potential issues early.

Health insurance is considered essential because it helps manage healthcare costs, ensures access to necessary medical services, and provides financial security and peace of mind in case of illness or injury.