New Delhi, April 24 -- Do you have health insurance? A constructive answer to this question can save you lakhs later in life. This is because health insurance is often seen as a financial safety net. Still, for most policyholders in India, the real test arises at the time of claim settlement.

This is because medical costs nationwide are rising sharply, and a rejected claim can put significant strain on household finances. This makes understanding the fundamentals of health insurance and how they work, along with common pitfalls, indispensable to help an individual make better health-related investment decisions.

A health insurance plan is essentially a contractual agreement in which an insurer promises to cover your medical expenses, su...