Insurance is the most important that most in need of money come in handy, while not to buy insurance is facing are needed, there is no guarantee, can only sit. People may encounter many items of risks in one’s life, and each item is the unpredictable risks and is not a short-term treatment. In fact, whether you buy insurance or not, you have to pay for the risk, it is when the risk comes and economic losses, the money is the insurance company or your wallets out. But people in their life has three big risks, none of us can escape. And they are that the unexpected always come unexpectedly, the disease always uninvited, endowment always comes. So the purchase of insurance is a certain role.
No matter what we discuss is the health insurance, life insurance, car insurance or other forms of personal insurance, the mechanism is that the probability of bad things happening to you is very small, while the probability of bad things not happening to you is great. You spend a small amount of money to buy insurance, once the unfortunate thing, insurance will be able to reduce the loss caused by the distress. In other words, you pay the insurance fee, once something happens, the insurer will pay you a certain amount of reparations to compensate you for the loss. For health insurance, people pay insurance premium is for when I was sick, the insurer may pay for most medical expenses. However, some people go without health Insurance.
Above introduce the background of the health insurance. Then analyze the necessity of health insurance with economics theory. Finally, the health insurance is to a certain extent.
The same with other insurance products, health insurance to maintain the principle of economics is that it will be uncertainty of loss at the smaller cost to determine in the future. The insurance does not change the expected level of the wealth, but it eliminates the difference between the two possibilities. In terms of the indifference utility of health insurance, the level of consumption that people go without health insurance is lower than the insured people.
However, health insurance has not life table that can be based on, the difficulty of prediction is much....