Health insurance is basically a kind of insurance policy that pays a portion of your medical expenses. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. Health insurance may take care of your pre-hospitalization consultancy, hospitalization, medicines, and laboratory tests. It may also pay for your post hospitalization treatment for a certain time-period depending on the policy.

In the last few years medical science has seen some tremendous advancement and as a result, health care costs have also gone up. The whole purpose of a health insurance is to help you pay for medical care when you are most vulnerable. It helps to protect you and your loved ones financially in the event of an unexpected illness or accidents that could prove to be very expensive. Also if you have health insurance, you may get regular check-ups and preventive care. You need health insurance because you do not know what the future holds for you.You may get seriously ill or get into an accident or you may need some surgeries.Most of these treatments can be very expensive.If you have health insurance then the company will bear the cost of your treatment from the very beginning and all you have to think about is getting a quick recovery.