Which statement best describes private insurance?

The statement that private insurance provides coverage for unexpected medical events accurately captures one of the primary purposes and functions of private health insurance. Private insurance is designed to manage financial risk by covering costs incurred from sudden medical needs, such as emergencies, hospital stays, or surgeries. This aspect is crucial as it ensures that individuals have access to necessary medical care without bearing the full financial burden, which can be substantially high for unforeseen health issues.

While private insurance can include preventive services as part of its coverage packages, it is not limited to them, which makes the option of only covering preventive services incorrect. Additionally, private insurance may offer a variety of plans with different premiums that can be higher or lower than government insurance, depending on the coverage details, making the statement about having a lower premium not universally applicable. The first option regarding limiting access to providers might describe certain plans but does not represent the core function of private insurance, which is broader in scope. Thus, the focus on coverage for unexpected medical events aligns well with its essential role in facilitating healthcare accessibility.