Illinois Health Insurance Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The primary purpose of health insurance is to provide financial protection against high medical costs. This means that health insurance is designed to help individuals and families manage the high expenses associated with medical care, such as hospitalizations, surgeries, and prescription medications. By paying regular premiums, the insured can transfer some of the financial risk associated with health care to the insurance company. In the event of an illness or injury, the health insurance plan covers a significant portion of the costs, ensuring that individuals are not financially devastated by unexpected medical expenses.

While the other options address important aspects of healthcare, they do not represent the core purpose of health insurance itself. For example, ensuring access to all types of healthcare services is a goal of healthcare systems but not solely the function of health insurance. Promoting wellness and preventive care is an important aspect of many health plans, encouraging a healthier population, but it is often considered a secondary effect rather than the primary purpose of insurance. Reducing healthcare costs for the government may occur through a variety of systems, but it is not the fundamental goal of individual health insurance policies. Thus, the role of health insurance as a financial safety net against high medical costs is paramount.