What is the main purpose of health insurance?

The main purpose of health insurance is to cover medical expenses due to illness or injury. This type of insurance is designed to protect individuals from high healthcare costs by providing financial support for a range of medical services, which can include hospital stays, doctor visits, surgeries, medications, and preventive care. It helps mitigate the financial burden that unexpected medical issues can create, thereby ensuring that people can receive necessary care without facing overwhelming costs.

The focus of health insurance is specifically aligned with healthcare needs, distinguishing it from other types of insurance that address different areas, such as auto, life, or property insurance. Each of those insurances serves a unique purpose related to their respective fields. In the case of health insurance, the goal is to enhance access to healthcare services and improve overall health outcomes by alleviating the financial obstacles associated with seeking treatment.