Advanced Diploma of Financial Planning (ADFP) Practice Test

Health insurance is important as it helps maintain:

1. Business profits.

2. Income security.

3. Market share.

4. Wealth without any costs.

The correct answer is: Income security.

Health insurance plays a crucial role in maintaining income security for individuals and families. By ensuring that individuals have access to necessary medical care without incurring overwhelming medical expenses, health insurance provides a safety net that protects their earning potential. It prevents situations where medical costs could lead to significant financial hardship, thus allowing individuals to focus on their work and personal responsibilities without the heightened stress of unexpected medical bills. Having health insurance means that, in case of illness or injury, one can receive the required treatment without drastically impacting their financial situation. This assurance is vital for maintaining a stable income, as it minimizes the risk of lost wages due to health-related absences from work. Overall, health insurance is integral to safeguarding an individual's financial stability, enabling them to manage predictable costs while being prepared for unforeseen health events.