Health insurance offers medical protection to the insured against both unexpected and anticipated medical costs. It offers financial support to pay for hospitalization, operations, daycare procedures, etc. A health insurance plan reimburses the insured’s medical treatment costs or offers cashless care.
The health insurance company agrees to offer financial protection to the insured up to the sum insured limit under the terms of a contract between the policyholder and the insurer. Along with other perks, such as pre- and post-hospitalization cover, medical check ups, a cashless facility, etc., it provides medical coverage for health care costs spent while in the hospital.