Insurance is a product offered to a group of people who supposedly share the risk of exposure to a hazard. All other forms of insurance are founded on three basic principles: be a property owner, existence of a chance of loss, and limited loss based on the value of the property. The premise of health insurance does not meet any of these conditions since it involves the insurance of a tangible state defined as an individual’s health. Health refers to both the physical and mental condition of a person, which means that health insurance primarily do not cover the occurrence of a loss. Unlike other insurances which the loss might never happen, every person in the world needs health care and thus claims will be made by every insured, except for cases of specific insurance against a specific disease such as cancer.

Using the above information, the health insurance premiums should be very high, nut this is never the case as insurers use insulation to protect the insured from the actual costs of healthcare. This means health insurance is supposed to help individuals from actually having to pay all the bills. Health is also a social welfare issue which means that the government must be involved as they collect taxes that should be used to improve the citizen’s welfare. 

By Chelsea Kim 2 years ago . Marked as helpful (565). Marked as unhelpful (519)