Health Insurance Primers

What is health insurance?


Monday 03 December 2007

Health insurance is a contract entered between a customer (the insured) and an insurance company (the insurer), wherein the insurer agrees to pay the insured for health care expenses that might arise due to hospitalization, accident, illness, or disease. All these expenses are subject to limits defined in the contract. Typically, the expenses covered are categorized into - hospital room charges, doctor/surgeon fees, medical tests, medicines and related expenses.

Health insurance helps in different ways:

  • It helps to secure expenses for future illnesses and hospitalization by paying a fraction of the expenses as the insurance premium
  • It reduces the risk of financial meltdown in the case of expensive medical care as well as post-illness care
  • It definitely induces a sense of security in the insured - even in the face of rising medical costs, his/her family have a financial back-up in the event of sudden medical emergencies.

See also:

Do I need health insurance?

How does my age affect my health insurance plan?

Miscellaneous Health Insurance FAQs

Health Insurance FAQs about Coverage

Health Insurance FAQs about Claims

Health Insurance FAQs about Premiums

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