What is the primary purpose of health insurance?

The primary purpose of health insurance is to provide financial protection against medical expenses. Health insurance is designed to help individuals manage the costs associated with healthcare, such as doctor visits, hospital stays, and prescription medications. By pooling resources among many policyholders, health insurance allows individuals to share the financial risks of unpredictable and often high medical costs.

This system makes healthcare more accessible, as insured individuals are typically less burdened by the fear of exorbitant bills in case of health crises or routine care. While offering preventive health services and promoting wellness may be important functions of some health insurance plans, these are secondary to the fundamental objective of safeguarding individuals from significant financial loss due to unforeseen medical expenses.