Health Insurance is a financial product that provides coverage for medical expenses incurred due to illness, injury, or hospitalization. It acts as a safety net, protecting individuals and families from high healthcare costs by either reimbursing expenses or directly settling bills with hospitals and healthcare providers.

The primary purpose of health insurance is to reduce the financial burden associated with healthcare. Policyholders pay a regular premium to the insurer, who in turn promises to cover specific medical expenses as per the policy terms. These expenses can include hospitalization, surgery, diagnostic tests, doctor consultations, and even pre- and post-hospitalization costs.

In India, health insurance can be categorized into different types such as individual health plans, family floater policies, critical illness plans, and group health insurance offered by employers. The Insurance Regulatory and Development Authority of India (IRDAI) oversees and regulates health insurance products to ensure transparency, fairness, and consumer protection.

Most policies come with features such as cashless hospitalization at network hospitals, no-claim bonuses for claim-free years, and tax benefits under Section 80D of the Income Tax Act. Policyholders must, however, be aware of important clauses like waiting periods, exclusions, and co-payments before purchasing a plan.

In summary, health insurance is a crucial component of personal financial planning. It ensures access to quality medical care without depleting savings, provides financial security during health emergencies, and supports long-term wellbeing through preventive care and wellness coverage options.