What is the primary goal of health insurance?

The primary goal of health insurance is to help manage the cost of medical expenses and reduce financial risk. Health insurance provides a mechanism for individuals to share the financial burden of healthcare costs, enabling access to necessary medical services without incurring overwhelming out-of-pocket expenses. By pooling resources, health insurance allows policyholders to mitigate the financial impact of unexpected medical conditions or emergencies.

Access to healthcare is made more feasible, as insurance facilitates coverage for a variety of services, from routine check-ups to major surgeries, thereby ensuring that individuals receive timely medical care without suffering significant financial hardship. This protection against high costs contributes to overall community health and security, allowing individuals to seek treatment when needed without fear of crippling debt.

In contrast, the other options don't align with the fundamental purpose of health insurance. While tax deductions may be a benefit for some policyholders, they are not a primary goal of health insurance itself. Furthermore, covering the total cost of all health care needs is impractical—health insurance typically involves cost-sharing strategies like copayments and deductibles, which means that not every expense is fully covered. Lastly, limiting access to specific healthcare services contradicts the main objective of providing comprehensive care and support to policyholders.