The premium is the amount paid by a person (or a business) for policies that provide healthcare or life insurance coverage.

A deductible is an amount that you're responsible for in the event of a loss. This is the amount you pay out-of-pocket, and insurance covers the remainder.

A health insurance marketplace, also known as a health insurance exchange, is a place (both online and in-person) where consumers in the United States can purchase private individual/family health insurance plans and receive income-based subsidies to make coverage and care more affordable.

All plans offered in the Marketplace cover these 10 essential health benefits:

Ambulatory patient services (outpatient care you get without being admitted to a hospital)

Emergency servicesHospitalization (like surgery and overnight stays)

Pregnancy, maternity, and newborn care (both before and after birth)

Mental health and substance use disorder services, including behavioral health treatment (this includes counseling and psychotherapy)

Prescription drugs

Rehabilitative and habilitative services and devices (services and devices to help people with injuries, disabilities, or chronic conditions gain or recover mental and physical skills)

Laboratory services

Preventive and wellness services and chronic disease management

Pediatric services, including oral and vision care (but adult dental and vision coverage aren’t essential health benefits)

Additional benefits:

Plans must also include the following benefits:

Birth control coverage

Breastfeeding coverage

Essential health benefits are minimum requirements for all Marketplace plans.

Specific services covered in each broad benefit category can vary based on your state’s requirements. Plans may offer additional benefits, including:

Dental coverage

Vision coverage

Medical management programs (for specific needs like weight management, back pain, and diabetes)

Information provided by: healthcare.gov

Your policy can help your loved ones in their greatest time of need. It can help cover some of life’s biggest expenses, like a home mortgage, debt, your children’s college tuition, and it can also replace lost income. Your policy can also help cover everyday expenses — anything your beneficiaries need, really. Ultimately, it’s up to them to decide how to use the payout.

A common and easy way to come up with a coverage estimate is to multiply your annual income by 10. Another way is to calculate your long-term financial obligations and then subtract your assets. The remainder is the gap that life insurance needs to fill.

You may already have some life insurance coverage from your employer. However, that policy might only provide a fraction of the coverage you actually need. Employer-sponsored policies typically offer coverage that is about 1-2× your annual salary. However, financial experts recommend having coverage that is about 10× your salary. This disparity can result in a large gap in protection if you’re solely relying on your policy through work — which is why many people buy individual term policies to supplement the coverage you receive through work.