What is the primary purpose of a "health insurance policy"?

The primary purpose of a health insurance policy is to cover medical expenses and health-related costs incurred by the insured. Health insurance provides financial protection against high healthcare costs, which can arise from doctor visits, hospital stays, surgeries, prescription medications, preventive care, and other medical services. By reducing the out-of-pocket expenses that individuals would otherwise face, health insurance plays a crucial role in ensuring access to necessary medical care and managing the financial risks associated with health issues.

Health insurance policies are specifically designed to address various health-related expenses, making them a vital component of personal finance and overall well-being. Unlike other insurance types, such as property or automobile insurance, which address risks and liabilities specific to physical assets or vehicles, health insurance focuses exclusively on protecting an individual's health and medical financial needs.