Health insurance policy terms affect the cost of coverage. Based on the terms of the policy, health insurance coverage may pay for everything or the insured may have to pay a portion of their medical expenses.

A deductible is the amount of money the insured pays before benefits from the health insurance policy are used. Usually a deductible is an annual amount. Once the deductible is paid up for the year, it does not start again until the following year.

A higher deductible cheapens the cost of health insurance policy premiums. Health insurance coverage begins once the deductible is met. If the insured has a high deductible, bills can become expensive to cover. The policy might also have individual deductible amounts and family deductible amounts.

Unlike a deductible, co-insurance is a percentage amount that is always paid by the insured. When a deductible is paid for the year, health insurance coverage kicks in. With co-insurance, a set percentage is paid each time medical services are rendered.

A popular split is 80-20, which means the health insurance policy pays 80 percent and the insured pays 20 percent. Other usual co-insurance percentages are 70-30 and 50-50. Splits such as 50-50 mean lower premiums but the insured must pay half of all their medical bills. Total out-of-pocket costs should be considered when deciding the terms of a health insurance policy.

A co-payment is the amount paid by the insured for each doctor visit. The remainder of the cost of the appointment is covered by the health insurance policy. Co-payments are typically $10, $15, $20 or $25 per doctor visit, based on the terms of the policy.

Additional terms to consider when choosing health insurance coverage are the length of the policy and when coverage begins. For example, some policies have a waiting period until certain types of coverage become available.

Pre-existing conditions might not be covered by the policy or the insured may have to wait a specific time period to get coverage. Exclusions are never covered by the health insurance policy. Based on medical history, exclusions and pre-existing conditions can be an important part of comprehensive health insurance coverage.

A health insurance policy is usually in effect for one year. After the year, premiums might increase and terms may change. Also, the payment of the deductible begins again. Waiting periods may not apply. The insured should carefully review the terms when health insurance coverage is renewed.

Finally, the lifetime maximum refers to the total amount the health insurance policy pays for its life. The amount paid for families or individuals may differ. Consider the depth of coverage needed to cover lifetime medical expenses when choosing health insurance coverage.