What is the primary purpose of health insurance?

The primary purpose of health insurance is to cover the costs of medical expenses and maintain financial protection. Health insurance acts as a safety net for individuals and families, helping to alleviate the financial burden that can arise from unexpected medical needs. With health insurance, policyholders pay a premium to receive coverage for various medical services, which can include doctor visits, hospital stays, prescription medications, and preventive care.

This coverage ensures that individuals are not solely responsible for high medical costs, which could lead to significant debt or impede access to necessary care. By spreading the costs among a larger group of insured individuals, health insurance makes healthcare more accessible and financially manageable, allowing people to seek medical attention when needed without the fear of overwhelming expenses.

The other options do not accurately capture the primary role of health insurance. For instance, while saving for medical expenses is important, health insurance is specifically designed to handle those costs directly rather than just covering personal savings. Additionally, health insurance does not provide free healthcare; rather, it helps cover the costs associated with obtaining care. Lastly, health insurance aims to increase access to a wide range of healthcare providers rather than reduce their number.