What is the primary purpose of health insurance?

The primary purpose of health insurance is to provide financial protection against medical expenses. This means that when individuals encounter unexpected health issues or require medical care, health insurance helps them cover part of the costs associated with treatment, hospital stays, medications, and other healthcare services. By spreading the risk of high medical costs among many individuals, health insurance minimizes the financial burden that a severe illness or accident could impose on one person.

This service enhances access to necessary healthcare, as individuals are more likely to seek treatment when they know they have insurance coverage to assist with the costs. While promoting healthy living and preventative measures is also a component of many health insurance plans, the foundational goal is primarily financial protection to help manage and alleviate the stress of potentially overwhelming medical expenses.