What is the primary purpose of healthcare insurance?

The primary purpose of healthcare insurance is to provide financial protection against medical expenses. This function is crucial as it helps individuals manage the potentially high costs associated with medical care. Healthcare insurance allows insured individuals to afford necessary medical treatments, which might otherwise be prohibitively expensive, thus reducing the financial burden on them in times of need.

This financial protection is achieved through risk pooling; many individuals pay premiums into the insurance system, and these funds are then used to cover the costs of care for those who need medical services. This arrangement not only safeguards individuals from catastrophic expenses but also promotes access to necessary healthcare services by making them more affordable.

Other options highlight important aspects of the healthcare system but are not entirely accurate in defining the primary purpose of insurance. Ensuring access to all healthcare services does imply a benefit of insurance, but it doesn't encompass the core financial protective function. While healthcare insurance can help lower overall healthcare costs for the insured, it does not eliminate them entirely. Lastly, the idea of providing free medical services is misleading, as most systems involve some form of payment or contribution, either through premiums, out-of-pocket costs, or taxes. Thus, the focus remains on financial protection as the primary purpose of healthcare insurance.