Health insurance is a necessity for all. With medical expenses soaring every day higher than a hang glider, paying for them could have you digging deep into the pockets of your jeans.

What types of health insurance are available?

Health insurance plans usually fall into one of two categories: indemnity plans (also known as reimbursement plans) and other one managed care plans such as health maintenance organizations (HMOs), preferred provider organizations PPOs), and point of service (POS) plans.

An indemnity plan gives the privilege to choose your own doctors and pays for your own medical expenses - totally, in part, or even up to a specified amount per day for a specified number of days.

Managed care plans generally provide wider coverage, but they all have an arrangement between the insurer and a selected network of health-insurance providers (doctors,hospitals, etc.). For example, an HMO would require that a primary care physician in the network coordinate all of your care and also refer you to specialists in the network.

No matter which type of health insurance you buy, you'll should to make sure it offers the right kinds of insurance coverage.

What should be covered?