What is Medical Insurance?

Medical insurance is a type of insurance that pays for insured members’ medical expenses due to accident, illness, or injury. It is an indemnity-based agreement under which the insurer promises to bear the hospitalization costs, OPD charges, doctor’s fees, medications, and other medical bills concerning the insured. The importance of Medical insurance has shot up in the last few years due to the alarming spread of lifestyle diseases among people at all stages of life.

Under the policy, the insurance company offers various sum insured options, which is the maximum amount the insurer would pay to the policyholder during a medical emergency. In return, the insured members promise to pay out a premium on a periodic basis.

How Do Medical Insurance Plans Work?

A Medical insurance plan works like any other insurance policy wherein the insurer agrees to pay the insured persons hospitalization cost up to the sum insured. The primary role of medical insurance is to lower the financial burden of unexpected life events like illnesses, accidents, and ailments.