Health insurance is a contract that requires an insurer to pay some or all of a person's healthcare costs in exchange for a premium. More specifically, health insurance typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages as a means of enticing quality employees, with premiums partially covered by the employer but often also deducted from employee paychecks.

With changing lifestyles, an increase in environmental pollution, and many such factors, an individual's health is severely affected. This could lead to various health conditions and diseases. Medical costs linked with the treatment of such sicknesses are accelerating rapidly. To reduce the financial damages caused by high medical bills, it is important to invest in good medical insurance policies.