Health insurance refers to a form of insurance which assists you to cover medical costs once you fall ill, get injured or require health care services. In easy terms- 

You can pay a certain sum of money (premium) to an insurance company and in exchange, the latter would pay your hospital bills, doctor visits, medicines, surgeries, and other medical expenses.

Key Characteristics of Health Insurance.

• Pays hospitalization expenses – Room fee, surgeon fees, surgery etc.
• Cashless treatment – You can receive treatment in network hospitals without cash, the insurer makes the payment.
• Reimbursement option – In case you visit a non-network hospital, then you can pay first and then reimburse later. 
• Couvers pre- and post-hospitalization costs – Pre- and post-hospitalization medical tests and drugs. 
• Tax breaks – You will get tax deductions under Section 80D of the Income Tax Act in India.
• The value of Health Insurance. Every year medical expenses are increasing.
• Guarantees your savings in times of emergency. Assures good quality healthcare.
• Provides respite to you and family.