Today's health insurance market is broken into many segments. Some are highly specialized in their coverage and others are more comprehensive. The more comprehensive and inclusive the health insurance the higher the premiums. Individual health plans are designed for those who have no access to a group health plan.

A Preferred Provider Organizations is the least restrictive type of managed care. PPOs have made arrangements for lower fees with a network of health care providers. PPOs give their policyholders a financial incentive to stay within that network.

A Health Maintenance Organization plan is the most restrictive type of managed care. Like Point-of Service and PPO's, HMO's have made arrangements for lower fees with a network of health care providers and give their policyholders a financial incentive to stay within that network.

As its name implies, short-term health insurance is temporary coverage and lasts from one to six months. Some companies may allow the insured to renew the policy one time but the total length of coverage will not exceed twelve months. This is perfect for someone who just dropped off their parents' policy because they graduated from college or maybe they hit that age limit and need health insurance before they find a full-time job.

Catastrophic health insurance policies are intended only to pay for major hospital and medical expenses, not routine visits to the doctor's office or trips to the ER to get stitched up. A catastrophic plan would cover things like treatment in an intensive-care unit for 10 days after an auto accident or complications from a pregnancy that land you in a hospital.

Catastrophic health insurance policies typically come with a very high deductible from $500 to $15,000 and a high maximum benefit payment, such as $1, $2 or $3 million.