Health Insurance

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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.

INVESTOPEDIA EXPLAINS '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.

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RELATED FAQS
  1. What is the average annual dividend yield of companies in the chemicals sector?

    Some of the most prominent examples of operations management in health care include controlling costs, enhancing the level ... Read Full Answer >>
  2. 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 >>
  3. 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 >>
  4. What happens if my insurance claim falls below the deductible level?

    Though the ins and outs of health insurance are often confusing, the concept of the insurance deductible is relatively straightforward. ... Read Full Answer >>
  5. How is the deductible I paid for my insurance claim treated for tax purposes?

    The deductible you pay on your health insurance policy may be tax-deductible if you meet certain conditions. However, whether ... Read Full Answer >>
  6. What are the main factors that impact share prices in the insurance sector?

    The main factors that impact share prices in the insurance sector are interest rates, earnings and actuarial risk. In the ... Read Full Answer >>
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