Medical Insurance

• Covers medical expenses and/or prescriptions

• Can be employer-based, individual, or government plans
• There are two primary types – a preferred provider organization (PPO) and a health maintenance organization (HMO)

• A PPO plan will have a higher monthly premium and offers more flexibility with providers and out-of-pocket medical costs
• A HMO plan will be lower in price but will not have as holistic of a coverage

Source: Deposit Photos

These are just a few types of insurance among many others, such as pet insurance, disability insurance, and umbrella insurance.

Why does it matter? Insurance is important because it helps you cover the costs of unexpected things, like accidents or illnesses, so you don't have to pay for everything yourself.