If you were to ever get into an accident or suffer some unforeseeable injury, having health insurance will save you an arm or a leg when paying the medical bills. But before you spend your money, make sure you know the common terms in the world of health insurance; that way you can determine what insurance company or plan may be right for you. The following terms are commonplace health insurance vocabulary:

• Deductible – Deductibles are the money you pay insurance companies before you can use the benefits of the health insurance plan you sign up for. It is usually an annual fee and can be charged for an entire family or multiple individuals, depending on your plan.

• Co-insurance – Co-insurance means that the insurance company will pay a certain percentage for a medical bill and the insured must pay the rest. For example, a company may pay for 70% for your trip to the dentist, but you have to pay the 30% out of your pocket.

• Lifetime maximum – The lifetime maximum is the amount of money a health insurance company will be willing to pay for your bills during a lifetime. Individual and family maximums are different, so be sure to compare them if searching for health insurance.

• Premium – A premium is the amount you initially pay for insurance coverage.

• Non-cancelable or Guaranteed Renewable Policy – A Non-cancelable or Guaranteed Renewable Policy states that if individuals keep paying their premiums, they will always be insured.

• Pre-existing condition – A pre-existing condition is a medical condition that an individual may have before signing up for health insurance. Some companies may pay for these conditions, whereas others may choose to insure those after a certain amount of time has passed.

• Exclusions – Exclusions are circumstances or conditions that the insurance company will never pay for. Make sure to know exactly what exclusions you are limited to before signing up for insurance.

Equipped with this vocabulary of essential insurance terms, you should now be better prepared to compare health insurance plans and determine which may be the best for you.