A health insurance policy is a contract between an insurance company and an individual or his sponsor (e.g. an employer). The contract can be renewable annually or monthly. The type and amount of health care costs that will be covered by the health insurance company are specified in advance, in the member contract or "Evidence of Coverage" booklet. The individual insured person's obligations may take several forms like Premium,Deductible,co-payment etc
More precisely, it is a type of insurance that protects against the risk of financial harm resulting from the insured's sickness, accidental injury or disability (although there is a distinct form of insurance usually called "disability insuance" which replaces income lost as a result of sickness or accidental injury).
Health insurance can be either group or individual.
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