Illinois Health Insurance Practice Exam

What is the primary purpose of hospital/medical expense insurance?

1. To provide wellness programs

2. To offer dental coverage

3. To protect insureds against high medical expenses

4. To cover transportation costs for doctor visits

The correct answer is: To protect insureds against high medical expenses

The primary purpose of hospital/medical expense insurance is to protect insureds against high medical expenses. This type of insurance is specifically designed to help cover the costs associated with hospital stays, surgeries, and other medical treatments, which can be significant and overwhelming without insurance. By having this coverage, individuals can mitigate financial burdens related to healthcare, ensuring that they receive necessary medical care without the fear of insurmountable bills. While options that mention wellness programs, dental coverage, and transportation costs might be valuable components of a comprehensive health insurance plan, they do not define the main goal of hospital/medical expense insurance. The focus of this insurance type is primarily on providing financial protection for medical expenses, making it essential for individuals seeking to manage their healthcare costs effectively.