Health Insurance works almost same as the vehicle insurance. You purchase a health insurance and pay the premium for sum insured. If you get hospitalized in that particular yeas, you will get the reimbursement upto sum insured i.e. you will get the amount back (which you spent during hospitalization).

Here’s a detailed explanation of common terms in health insurance in India, with definitions and examples for better understanding: 1. Premium 2. Sum Insured 3. Deductible 4. Co-payment 5. Waiting Period 6. Exclusions 7. Cashless Facility

Here are some more common terms in health insurance : 1. Grace Period 2. Restoration Benefits 3. Claim Settlement Ratio 4. Incurred Claim Ratio 5. No Claim Bonus 6. OPD Cover

Types of health insurance policies - 1. Individual Policy 2. Family Floater Policy 3. Group Health Insurance Policy. I will also add the examples while explaining types of health insurance policies for better understanding.