Health insurance plays a crucial role in protecting individuals and societies from the financial risks associated with illness and medical care. Healthcare expenses are often unpredictable and can become a major economic burden, especially during serious diseases, accidents, or long-term treatments. In the context of health economics, health insurance is considered an important mechanism for risk pooling, resource allocation, and ensuring equitable access to healthcare services. It reduces the direct financial burden on individuals and promotes timely utilization of healthcare facilities. The need for health insurance arises primarily due to the rising cost of medical services. Advances in medical technology, increasing demand for quality healthcare, and the growing prevalence of chronic diseases have significantly increased healthcare expenditure. Without insurance coverage, many individuals may delay or avoid necessary treatment because of financial constraints. Health insurance provides financial protection by covering medical expenses such as hospitalization, surgeries, diagnostic tests, medicines, and preventive care. It also reduces the possibility of households falling into poverty due to catastrophic health expenditure. Health insurance contributes to improving healthcare accessibility and equity. By pooling contributions from a large population, insurance systems allow resources to