What is the main purpose of health insurance?

Health insurance primarily serves to protect individuals from the financial burden associated with high medical costs. By covering a significant portion of healthcare expenses, such as hospitalizations, surgeries, and preventive care, health insurance minimizes the out-of-pocket expenses that individuals must pay when they require medical services. This protection is vital, especially in situations where unexpected illnesses or injuries can lead to exorbitant costs, which most individuals would find difficult to manage without insurance.

While the other options mention important aspects related to healthcare, they do not encapsulate the fundamental purpose of health insurance. Free healthcare for all citizens is a different concept that pertains to overall healthcare policy and governance rather than the specific function of insurance. Access to preventive care is indeed a benefit that health insurance can provide, but it is not the primary purpose—it is more a result of having insurance coverage. Funding medical research initiatives is also a significant aspect of the broader healthcare ecosystem, but it is unrelated to the individual financial protection that health insurance provides.