What Was The Original Purpose Of Health Insurance? 
The purpose of health insurance originates in the same concept as for any type of insurance - to protect yourself financially in the event of a catastrophic event by pooling the risk and shifting it to a third party -LRB- the insurance company -RRB- . In return for a monthly premium , the insurance company will absorb the risk of incurring a massive expense should something happen to the insured individual - if something does happen , they would the financial hit instead of you . In the case of health insurance , a catastrophic event can be many things - a good example is having a surgery performed . A given surgery could cost $ 100,000 or more . Your average person could not afford to write that check . If you have any other questions about health insurance , send me a message by clicking on the `` contact me '' button . 