What is one primary purpose of health insurance?

The primary purpose of health insurance is to cover medical expenses. Health insurance is designed to protect individuals and families from the high costs associated with healthcare. This includes coverage for hospital stays, doctor visits, surgeries, prescription medications, and preventive services such as vaccinations and screenings. By pooling risks and resources among many policyholders, health insurance provides financial protection against unexpected medical bills, making access to necessary care more affordable.

While savings for retirement, wellness programs, and educational seminars may be beneficial in their own right, they do not fall under the core function of health insurance. The essential aim of health insurance is to ensure that individuals can obtain required medical services without facing prohibitive costs, thus promoting overall health and wellbeing within the community.