Health insurance is a type of insurance policy that provides financial protection to the policyholder against medical expenses incurred due to illness or injury. It is a contract between the policyholder and the insurance company, in which the policyholder pays a premium, and the insurance company agrees to cover the cost of medical expenses up to a certain limit. Health insurance policies vary in coverage, cost, and benefits, and can be purchased as an individual or group policy.

The primary purpose of health insurance is to provide financial protection to the policyholder against unexpected medical expenses, which can be costly and can cause financial strain. Health insurance policies can cover a wide range of medical expenses, including hospitalization, doctor’s fees, diagnostic tests, medication, and surgery. Some policies may also cover pre-existing conditions, maternity care, and mental health services.

There are different types of health insurance policies available, such as indemnity plans, health maintenance organization (HMO) plans, preferred provider organization (PPO) plans, and point of service (POS) plans. Each plan has its own set of benefits, costs, and limitations, and it is important for policyholders to choose the plan that best suits their needs and budget.