What is health insurance's main purpose?

• A. To increase investment returns
• B. To ensure all medical services are free
• C. To protect against high medical costs and provide access to care
• D. To avoid paying taxes

Answer: (C)

Health insurance exists to share the risk of medical costs and ensure people can get care when they need it. By pooling premiums from many people, the plan funds medical expenses for those who get sick or are injured, preventing one dire illness or accident from causing financial ruin. This protection helps people access doctors, hospitals, and prescriptions without facing overwhelming out-of-pocket bills. It’s not about making services free or about chasing investment returns; you still have premiums and potential co-pays. It isn’t primarily a tax avoidance tool, either. The core idea is to shield individuals from huge health costs while keeping needed care within reach.