Insurance is a binding agreement between the insurer (insurance company) and the insured (person or group buying insurance), in which the insurer is responsible for providing financial compensation to the insured under certain conditions determined by the insurance agreement. Under certain conditions, it is usually related to unpredictable events such as accidents, loss or damage. Insurance allows individuals or groups to transfer risk to insurance companies by paying annual or monthly premiums (fees). Thus, insurance helps individuals or groups reduce unpredictable risks by providing financial compensation in these conditions.

There are many types of insurance, including health insurance, life insurance, car insurance, home insurance, and many others. Insurance is a way to protect against financial loss. It is a contract in which an insurer agrees to provide financial protection to an insured in exchange for a premium. The insured pays the insurer a set amount of money, called a premium, and the insurer agrees to pay for certain losses or damages that may be incurred by the insured. The specific terms of an insurance policy, including the types of losses that are covered, are outlined in the policy document.  



There are many types of insurance, including:

  • Health insurance: covers medical expenses for an individual or family.
  • Life insurance: provides financial protection for the policyholder's family in the event of the policyholder's death.
  • Car insurance: covers damages to a car or injuries sustained in an auto accident.
  • Home insurance: covers damages to a home or its contents.
  • Disability insurance: provides income to an individual who becomes disabled and is unable to work.
  • Long-term care insurance: covers the cost of long-term care, such as nursing home care or in-home care.
  • Pet insurance: covers veterinary expenses for a pet.
  • Travel insurance: covers medical expenses, trip cancellations, and lost luggage while traveling.
  • Renters insurance: covers damages to personal property in a rented residence.
  • Business insurance: protects a business from financial losses resulting from events such as accidents, theft, and lawsuits.

This is just a small sampling of the types of insurance available. Do you have any specific questions about a particular type of insurance?



Health insurance is a type of insurance that covers medical expenses for an individual or family. It can help pay for the cost of medical treatment, medications, and other healthcare expenses. Health insurance plans typically have a deductible, which is the amount that the policyholder must pay out-of-pocket before the insurance company will start covering expenses. There are several types of health insurance plans, including:

  • HMO (Health Maintenance Organization): requires policyholders to choose a primary care physician who coordinates their healthcare and refers them to specialists as needed.
  • PPO (Preferred Provider Organization): allows policyholders to see any healthcare provider they choose, but they will pay more for services provided out-of-network.
  • POS (Point of Service): combines elements of HMO and PPO plans, allowing policyholders to see any healthcare provider they choose, but requiring a referral from a primary care physician for specialist care.
  • EPO (Exclusive Provider Organization): similar to an HMO, but does not cover out-of-network services except in the case of an emergency.
  • HDHP (High Deductible Health Plan): typically has a lower premium and a higher deductible than other plans. It may be paired with a health savings account (HSA), which allows policyholders to save money tax-free to pay for healthcare expenses.

Do you have specific questions about insurance, health insurance or certain types of insurance?, please contact MHIB