Which of the following describes the main purpose of health insurance?

The main purpose of health insurance is to cover medical expenses and protect individuals against high healthcare costs. Health insurance functions as a financial safety net, allowing insured individuals to access necessary medical services without incurring exorbitant out-of-pocket expenses. In essence, it helps mitigate the risk associated with unexpected medical events, ensuring that individuals can afford necessary care without facing financial hardship.

Health insurance plans typically cover a range of healthcare services, including preventive care, hospitalizations, surgeries, and prescription medications. By pooling risk among many policyholders, health insurance makes it possible for individuals to share the costs of healthcare, thus enabling better access to medical services. This fundamental protective role is essential in maintaining public health and individual well-being.