Understanding Health Insurance
Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. It reimburses the expenses incurred due to illness or injury or pays the care provider directly.
💡 Simple Definition:
Health insurance is a contract between you and an insurance company where you pay a regular premium, and in return, the insurer provides financial coverage for medical expenses during health emergencies.
How Health Insurance Works
1
Policy Purchase
Buy policy by paying premium2
Medical Emergency
Hospitalization required3
Claim Settlement
Insurer pays medical billsKey Benefits of Health Insurance
Financial Protection
Saves your savings during medical emergenciesCashless Treatment
No upfront payment at network hospitalsTax Benefits
Save taxes under Section 80DPreventive Care
Free health check-ups includedTypes of Health Insurance Plans
| Plan Type | Coverage | Best For |
|---|---|---|
| Individual Health Plan | Covers one person only | Single individuals |
| Family Floater Plan | Covers entire family under single sum insured | Nuclear families |
| Senior Citizen Plan | Designed for people above 60 years | Elderly parents |
| Critical Illness Plan | Lump sum payment on diagnosis of specific illnesses | Additional protection |
| Group Health Insurance | Provided by employers to employees | Working professionals |
Important Health Insurance Terms
💵 Premium
Amount you pay periodically for insurance coverage🛡️ Sum Insured
Maximum amount insurer will pay in a year🏥 Network Hospital
Hospitals where cashless treatment is available⏰ Waiting Period
Time before specific conditions are covered
Pro Tip: Always buy health insurance when you're young and healthy. Premiums are lower and you get coverage before developing any medical conditions.