What is the main purpose of health insurance?

The main purpose of health insurance is to help cover medical expenses and reduce financial risk. Health insurance provides individuals and families with a safety net against potentially high medical costs. By paying a premium, policyholders gain access to a range of healthcare services without the burden of paying the full cost out of pocket at the time of service.

This financial support is crucial as it allows individuals to seek medical care when needed without the fear of incurring overwhelming debt. It promotes early intervention and regular health check-ups, which can lead to better health outcomes.

The other options focus on the benefits to healthcare providers or the idea of free services, which do not reflect the primary function of health insurance as a mechanism for financial protection against medical costs. The essence of health insurance lies in risk management and providing access to necessary health services while minimizing financial hardship.