Insurance Broker Certification Practice Exam

Which insurance type provides coverage against the loss of income from medical expenses?

1. Property insurance

2. Health insurance

3. Casualty insurance

4. Life insurance

The correct answer is: Health insurance

Health insurance provides coverage against the loss of income related to medical expenses by covering the costs associated with healthcare services, including hospital stays, surgeries, doctor visits, and prescription medications. When you have health insurance, it helps to alleviate the financial burden of unforeseen medical expenses, ensuring that individuals can afford necessary treatments without severe economic hardship. In addition to covering medical costs directly, health insurance may also prevent loss of income by reducing the amount of out-of-pocket expenses for care. If an individual suffers from a health issue that leads to time off work or reduced earning potential, health insurance can mitigate these financial impacts by covering medical treatment costs, therefore indirectly protecting an individual’s income by ensuring they can receive care and recover more quickly. Property insurance, casualty insurance, and life insurance do not provide direct coverage for the costs associated with medical expenses or cover loss of income due to medical issues, which is why health insurance stands out as the appropriate choice for this question.