Definition of Health Insurance

Investopedia Definition

Health insurance is a contract between a consumer and an insurance company that contains the insurance company's agreement to pay part or all of the insured's medical expenses in exchange for regular premium payments.

In many countries, having health insurance is very important and should be a top priority in financial planning. Health cost inflation in 2024 to 2025 will reach 13-19 percent, much higher than general inflation. This means that medical costs will continue to rise every year, putting people at risk of being burdened with large medical expenses if they do not have health insurance.

Centers for Medicare & Medicaid Services (CMS)

However, according to the Centers for Medicare & Medicaid Services (CMS), health insurance is a legal right that can be obtained through regular premium payments.

Conclusion

It can be concluded that health insurance is a financial product that helps reduce the financial burden of health risks by covering medical treatment costs, such as hospitalization, outpatient care, and surgery, and ensuring access to adequate medical services for policyholders.

You are advised to have health insurance so that you can avoid unexpected medical expenses and get health services more quickly and efficiently.

Health insurance can cover medical expenses when the insured is sick. The costs covered can include hospitalization, doctor consultations, surgery, and the purchase of medicines.