What is the definition of Health Insurance?

Health insurance is defined as a contract between a policyholder and an insurance carrier for medical expense reimbursement. This definition accurately captures the essence of health insurance, which is designed to help individuals cover the costs of medical care. By purchasing a health insurance policy, the insured gains access to a variety of healthcare services, and in return, the insurer agrees to pay part or all of the medical expenses incurred by the policyholder, subject to the terms of the policy.

This relationship is crucial for managing healthcare costs, as unexpected medical expenses can be financially burdensome. Health insurance can include coverage for doctor visits, hospital stays, prescription medications, and preventive services, thus alleviating some of the financial risks associated with illness and injury.