What role does health insurance play in managing health risks?

Health insurance plays a crucial role in managing health risks by helping individuals with future planning. It provides financial protection against the potentially high costs of medical care that can arise from unforeseen health issues. By having health insurance, individuals can plan their healthcare needs and expenses more effectively, ensuring they have access to necessary services when required without facing overwhelming financial burdens.

Additionally, health insurance allows individuals to engage in preventive care, leading to better long-term health outcomes. By covering routine check-ups, screenings, and vaccinations, health insurance promotes proactive health management, which can identify issues early and reduce the severity of any future health problems. This aspect of future planning is essential, as it enables people to make informed decisions about their healthcare and associated costs.