1. Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. Ideally, insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a reasonable fee.

2. Insurance is a promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company.

3. Insurance is protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium

4. Insurance is a plan in which individuals, and organization who is concerned about potential risks will pay premiums to an insurance company, who in return, will reimburse them if there is loss. To generate a profit, the insurer will invest the premiums it receives.

5. Insurance is a system under which individuals, businesses, and other organizations or entities, in exchange for payment of a sum of money (called a premium), are guaranteed compensation for losses resulting from certain perils under specified conditions in a contract.

In short it can be concluded that insurance is a contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company and in return the individual or entity pays premium to the insurance company for the insurance cover.

Just as there are many types of homes with different surroundings and neighborhood, there are different types of insurance covering different types of risk viz. health insurance, household insurance, shopkeepers insurance, vehicle insurance, life insurance, insurance against accidents etc.

What is Health Insurance :

Health insurance is a type of insurance whereby the insurer pays the medical costs of the insured if the insured becomes sick due to covered causes, or due to accidents.

People often get confused between the aspects covered in Life insurance and health insurance. The largest difference between health insurance and life insurance is that for life insurance, a person may purchase guaranteed renewable insurance for the whole of the insured's life at a constant premium rate, while health insurance is generally purchased year by year with generally no assurance of renewal and if no guarantee that premium rates will not increase. A health insurance policy is a legal, binding contract between the insurance company and the customer. Also for health insurance the insurance company pays the medical costs of the insured person whereas in life insurance the insurance company pays the sum assured to the dependant of the insured person on the death of the insured person.

Affordable health insurance is available today:

Nowadays health treatment is very expensive, more than the disease the cost of treatment takes its toll, therefore one need to look for affordable health insurance which requires in-depth analysis of affordable health insurance options available. In other words, finding an affordable health insurance simply means to strike a balance between the needs and the means.

When shopping around for an insurance policy, make sure what you want and look for the best priced package that is right for you, prices can vary from one insurance company to the other. Also consider the claims regarding the settlement process, the amount of the deductible and the extent of the replacement coverage. Insurance companies and the policies they offer are not all the same, so think about more than just the price. An insurance agent will be able to guide you in opting for the health insurance policy suitable to your needs as majority of insurance companies sell their policies through agents.

Generally it is suggested to take a group health insurance as it is more affordable, covers family members in the policy viz. parents, children and spouse and also gives certain benefits which are not available if an individual health insurance is opted for. The health insurance will not only cover expenses incurred during hospitalization but also during pre and post hospitalization expenses like money spent for buying the prescribed medicines and the money spent for the tests conducted for the illness. This cover will be for the amount of sum insured.

Another way of getting affordable health insurance is to check if the health insurance policy covers unnecessary extras, if this is the case you can ask the insurance company to eliminate them from your policy which will enable you pay less premium. Due to the competition and presence of considerable numbers of insurance companies you can always get a good affordable health insurance with certain extra benefits like the cashless hospitalization (which is provided by almost all the insurance companies), coverage for Critical illness. Certain tips can be kept in mind while looking for affordable health insurance.

Before opting for a health insurance eliminate your bad habits like smoking which can have a negative affect on the price you pay for health insurance. The same applies to people who are obese as lot of diseases is related to obesity like heart problem, blood pressure, diabetes etc. Ensure you improve your health by quitting smoking, losing the extra weight which will help you reduce the category of risk in the eyes of the insurance company. Also try to raise your deductible to lower your premium. The more you are willing to pay out of your pocket, the less in premiums you will have to pay. The only three aspects which are not included in the health insurance are any dental treatments, maternity costs and diabetes, but any other illness including cancer is covered under health insurance.

An added advantage of health insurance is the tax benefits which it attracts and the maximum amount of deductibles available is higher for senior citizens.