Questions: What are the costs of buying health insurance? a) Insurance provides protection from financial loss, that is, you will have to pay less if you become pick or injured. b) Insurance companies collect a relatively small amount of money (premiums) from a large group of policy holders. These premiums are used to create a pool of funds to compensate policy holders who experience loss. c) There are no costs to buying health insurance. This type of insurance only comes with benefits to the policyholders. d) The annual premiums plus the opportunity costs, the lost opportunities to spend the money on other goods and services or the lost opportunity to invest the money and earn interest.

The answer is d) The annual premiums plus the opportunity costs, the lost opportunities to spend the money on other goods and services or the lost opportunity to invest the money and earn interest.

While this statement is true about the benefits of health insurance, it does not address the costs associated with purchasing health insurance.

This statement explains how insurance works and how premiums are used but does not directly address the costs to the individual buying health insurance.

This statement is incorrect because there are indeed costs associated with buying health insurance, such as premiums, deductibles, and co-pays.

This option correctly identifies the costs of buying health insurance, including both the direct cost of premiums and the indirect opportunity costs.