Welcome to part two of our series of articles titled "The Newbie Guide to Understanding Your Health Insurance Policy". If you read out previous article then you know that we've already discussed some of the most important terms when it comes to deciphering your health insurance plan. Our first article covered the deductible, co-payments (sometimes referred to as co-insurance) and out-of-pocket costs. This article will cover exclusions, pre-existing conditions as well as the waiting and grace periods. Let's get started.

As with any business, your health insurance company or provider does have a requirement of needing to make a profit. With that said, many health insurance plans come with a lifetime maximum cap or term placed on it by the provider of your health insurance policy. What this generally means is that at some point in time (based on a dollar amount) your health insurance policy will cease to provide coverage. Initially this can sound very alarming but actually you don’t really need to be worried. This cap normally has a very high ceiling or figure amount that is in place so that your health insurance can provide adequate coverage for your medical needs. Even with the high cost of medical care in today's economy you can still place a safe bet that a majority of consumers with health insurance benefits will never exceed their cap that has been place don their policy by their health insurance provider.

The exclusions section is an important section of your health insurance plan and should be read rather carefully in order to familiarize your self with what your health insurance policy will and will not cover. Don't let this be a gray area for you. Take the time to do your due diligence in order to make sure you know exactly what your health insurance policy provides to you in terms of health coverage. The last thing you want to find out is that the fees associated with the recuperation period needed in a hospital after a major operation or surgery isn't covered by your health insurance. If you were told that this section was the most important section of your whole entire health insurance policy it wouldn’t be to far from the truth. Don’t make a mistake and just gloss over or skim this section. Take the necessary time to really learn what it covers because it could save you a lot of money in the future.

If there ever were a nemesis for folks wanting to obtain a new health insurance policy then pre-existing conditions would be it. Basically this portion of your health insurance policy deals with any previously existing medical conditions that you may have. In some cases many health insurance companies will go ahead and assume the risk associated with covering a pre-existing condition, of course this naturally means that you could be faced with paying a higher deductible and having a lower amount of coverage. However, don’t be mislead – there are some instances where a pre-existing condition could result in a health insurance provider refusing or denying you the opportunity to receive medical coverage under their health plans. Make sure and do your homework when you shop around to see what pre-existing medical conditions are covered and by which health insurance provider.

A few minor health insurance terms include the waiting period and the grace period. The waiting period is the length of time necessary before the benefits from your health insurance policy actually kick in and start providing coverage. The wait times differ among the many health insurance companies so don’t forget to compare the waiting period when doing your health insurance comparison-shopping. The grace period deals with finances and it's the amount of time allowed for a consumer to render payment for their health insurance rate or premium after the original payment deadline has passed.

As you can see there are many different aspects to a health insurance policy that should be checked, reviewed and compared by someone interested in obtaining a good solid health insurance coverage plan for the right amount of money.