Health insurance is crucial for Americans due to the high cost of healthcare. Unless you’re very wealthy, over 65, or very poor, you would need it. The wealthy can typically afford the cost of even extraordinary emergency or chronic medical care. Those over 65 have Medicare, which they’ve paid into. The very poor may qualify for Medicaid.

For everyone else, purchasing insurance is necessary to avoid the risk of medical bankruptcy. However, the true purpose of health insurance is often overlooked. It’s similar to insurance for your car, home, or apartment, aiming to protect your life savings from the overwhelming costs of a serious accident, medical emergency, or chronic disease.