Why do I need health insurance? I haven’t been sick in years, and going without it would save me money.

Health insurance is a protection against what might happen. Be thankful that you have been in good health, but realize that without insurance, any illness or injury could inflict major damage on your bank account in bills for doctor or hospital visits, diagnostic tests and prescriptions. In addition, you are more likely to get routine or preventive care (and head off potential problems) if you have health insurance. Health insurance buys peace of mind, which doesn’t carry a price tag.

If I have had some problems with my credit report in the past, can it affect my health insurance premium?

Yes, insurers are reluctant to sell policies to people who have had credit blips; they consider those applicants more of a risk. You might pay a higher premium or not be able to get all the coverage you want. Many people think of getting their credit checked before making a big purchase, such as a car or flat-screen TV, and health insurance definitely qualifies as a big purchase. Companies that provide free credit checks are Equifax, Experian and TransUnion.

What is a co-payment? Is that the same as co-insurance?

A co-payment is a predetermined, set amount you pay for each visit to the doctor or emergency room or for each prescription. Co-pay amounts may vary depending on the type of doctor or the type of prescription. Unlike a co-payment, co-insurance is a percentage of the total cost that comes out of your pocket. Some insurers expect you to pay 100 percent of a bill upfront, then they will reimburse you for the percentage your policy covers.

Does health insurance have a deductible? Does it work the same way as deductibles for auto or homeowners’ insurance?

Like with other forms of insurance, a deductible is the out-of-pocket expense you must shoulder before your health insurance coverage kicks in. But unlike other forms of insurance, the company doesn’t automatically cover the rest of the costs. You may still be responsible for copays and or/co-insurance, if they apply in your policy. Deductibles generally are computed on an annual basis, with separate amounts for each family member and a joint one (usually double the amount for individuals) for the whole family. Insurers also set an out-of-pocket maximum, above which they pay all health-related costs.

What kind of questions will they ask on the application?

The insurer wants your business, but first wants a detailed assessment of any potential risk factors. Questions might include whether you’ve had any instances of heart disease, high blood pressure or cholesterol or cancer, whether you are a smoker or drink alcohol, along with your height and weight. You’ll have to get over any discomfort with providing the answers, and make sure to be honest.