Most of us understand the importance of having medical coverage not only to maintain our physical health but to protect our financial well-being in the event of an emergency. To make sure you are properly insured it's a good idea to understand the key aspects of your coverage whether you're covered by a group health insurance policy or have purchased one of the many available individual healthcare plans.

First let's take a look at how group health care insurance policies operate. Simply put group policies are employer-paid health coverage. Many large employers, unions, and small businesses offer group plans to their employees or union members. Typically, an employer will cover a minimum of fifty percent of the policy's cost while the employee is responsible for paying the remaining premiums. The type of health care plan may also vary between PPO's, HMO's and other less frequently held policies. Additionally, some employer sponsored plans may offer additional coverage like vision, dental, mental health and life insurance.

For those of us who are not covered under a group health insurance policy, it is left to the individual to purchase his or her own medical coverage. There are many more options available for individual policy holders who can customize their health care plan to fit their own needs. With individual healthcare plans, the insured can decide between a few different plans, though generally cost is a paramount consideration. To that end, one can choose a higher or lower deductible and the amount of total coverage based on what they can afford. In most cases, an individual who is covered under a group plan that doesn't include vision or dental may purchase those policies separately.

There are two main differences between an individual versus a group plan: the premiums are generally much higher because the entire cost of the plan falls on your shoulders and you are typically required by the insurer to submit your proof of health. If you have a pre-existing condition or other health-related issues you may be refused coverage. Under group plans all employees cannot be rejected based on their health and will be covered under their employer's policy.

Today there are forty-six million Americans without health coverage. Those without medical insurance not only put themselves and their families at great financial risk but put their health ask risk too. Its important to understand your policy's limits and coverage whether you have an individual or group insurance plan. Make sure you'll be prepared no matter what comes down the road. Understanding how group and individual health insurance plans interact is important for everyone.