Health Insurance


DEFINITION of 'Health Insurance'

A type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured. Health insurance can either reimburse the insured for expenses incurred from illness or injury or pay the care provider directly. Health insurance is often included in employer benefit packages as a means of enticing quality employees.

BREAKING DOWN 'Health Insurance'

The cost of health insurance premiums is deductible to the payer, and benefits received are tax-free. Health insurance has many cousins, such as disability insurance, critical (catastophic) illness insurance and long-term care (LTC) insurance.

  1. Conversion Privilege

    An insurance policy in which the insurer is required to renew ...
  2. Preferred Provider Organization ...

    A type of health insurance arrangement that allows plan participants ...
  3. Group Health Insurance Plan

    An insurance plan that provides healthcare coverage to a select ...
  4. Health Savings Account - HSA

    An account created for individuals who are covered under high-deductible ...
  5. Long-Term Care (LTC) Insurance

    Coverage that provides nursing-home care, home-health care, personal ...
  6. Disability-Income (DI) Insurance

    An insurance product that provides supplementary income in the ...
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  1. What is the difference between a peril and a hazard?

    The two related terms "peril" and "hazard" are often used in reference to the insurance industry. Essentially, a peril is ... Read Full Answer >>
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    Some of the most prominent examples of operations management in health care include controlling costs, enhancing the level ... Read Full Answer >>
  3. How does being overweight affect my healthcare costs?

    Obesity and being overweight result in higher costs for individuals and for the broader health-care sector. In the United ... Read Full Answer >>
  4. What is the difference between moral hazard and morale hazard?

    Morale hazard is an insurance term used to describe an insured person's attitude about his belongings. It arises when the ... Read Full Answer >>
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    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
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