GFL Financial Literacy Practice Test 2026 – Complete Exam Preparation

Health insurance is designed to share the cost of medical care. It pays a portion of medical expenses when you’re sick or need treatment, helping reduce how much you pay out of pocket. You typically still cover part of the bill through features like deductibles, copays, and coinsurance, and there may be a limit on the total amount you’ll pay in a year or over the life of the policy. That’s why the description matches “a portion of medical expenses due to illness and disease.” Costs unrelated to healthcare, such as vehicle repairs or property taxes, aren’t medical expenses and aren’t covered by health insurance.