Health Insurance plans are designed to protect you and your family from major medical costs. The biggest benefit of a health insurance plan is that the insurance company will pay for your treatment if you are admitted to a hospital bed. As hospital admission costs can run into several lacs, this is the primary protection (feature) offered by health insurance plans all across the world.
On top of providing payment for hospital admission (IPD treatment), different health insurance plans provide payment in case a doctor recommends any day-care surgery (chemotherapy for example) or specialized investigation (MRI, CT Scan etc.). The insurance company will pay for these procedures even if you are not admitted to a hospital.
All health insurance plans will also cover any instance of a bodily injury due to which you might get a fracture or a wound. The insurance company will pay for treatment of a fracture or wound even if you are not admitted to a hospital.
Health insurance plans are designed to protect you from situations which would otherwise force you to take a loan or to use your savings to pay for treatment. The annual cost of any health insurance plan is usually less than 2-3% of the total payment (coverage) the insurance company will make in case of illness or injury. Thus, over the long run, getting and staying insured will save you money and provide unparalleled peace of mind as well.