Which best describes health insurance?

• A. Disability Insurance
• B. Property insurance
• C. Liability insurance
• D. None of the above

Answer: (A)

Health insurance is coverage that helps pay for medical care, such as doctor visits, hospital stays, surgeries, and prescriptions. Disability insurance, on the other hand, is income protection that kicks in when you’re unable to work due to illness or injury. Property insurance covers damage to physical property, and liability insurance protects you against claims for injuries or damage you may cause to others. Because health insurance is about paying medical costs rather than replacing income or protecting property or liability, none of the listed options describe health insurance. The concept to focus on is that health insurance is medical expense coverage, distinct from disability, property, or liability insurance.