Health insurance can be defined as the insurance which provides for the medical bills incurred on treatments of health problems of a person or group of persons. The two categories of health insurance include the individual health insurance plans and the group insurance plans.

An individual purchases an Individual health insurance to cover medical expenses incurred on his medical care. Employers purchase a group health insurance plan so that the medical expenses of a group of employees may be covered.

By an individual health plan, it is not meant that the plan provides for medical expenses of only a single individual. Depending upon the discretion of the insurance company from which a health plan is being purchased, the individual health plan may cover the medical expenses of the spouse and children of the person who buys the plan.

A person has to spend more on buying an individual health insurance plan as opposed to other types of health insurance plans. An individual health plan generally does not provide any types of work place benefits. Also the amount of premium that has to be paid is more than the group insurance plans.