Why do individuals typically purchase health insurance?

Individuals typically purchase health insurance primarily to cover medical and surgical expenses. Health insurance is designed to assist in managing the cost of healthcare, which can be significant. Medical expenses can arise from routine care, unexpected emergencies, or significant surgical procedures, and without insurance, these costs can become overwhelming.

Having health insurance provides individuals with access to necessary medical care without the full financial burden falling on them. It helps mitigate the financial risk associated with high healthcare costs, ensuring that individuals can receive adequate medical attention when needed.

While there are tax benefits associated with some insurance plans, or reasons to consider job security, these aspects are secondary to the fundamental purpose of health insurance, which is to shield individuals from the high costs of medical care. The option regarding retirement income and job loss protection does not align with the direct purpose of health insurance, which focuses on health-related expenses rather than income or employment stability.