Health insurance, just like insurance in general, is a form in which people collectively pool their risk of incurring medical expenses. This collective is usually publicly owned or organized on a non-profit basis for the benefit of the members of the pool. In some countries, these health insurance pools are allowed to be managed by for-profit pools. Depending on the type of coverage, health insurance just about covers anything that can go wrong with you physically and sometimes mentally.
Why do we need health insurance? We never know what medical or health problems may arise just living day to day. From broken bones to terminal diseases, the costs of treatment alone are enough to bankrupt even people who are financially stable. Medical bills are the number one cause of Chapter 7 and Chapter 13 personal bankruptcies.
Typically, you can get health insurance as a benefit of working for an employer that provides this plan. If you are self-employed or not employed, you can purchase health insurance plans on your own.
