Document Type

Other

Publication Date

7-1-2006

Keywords

health insurance, coverage

Extension Number

ExEx 14070

Department

Consumer Sciences

Description

The basic purpose of health insurance is protection. It protects the policyholder and his or her family from a designated catastrophic loss. It’s all about the “law of large numbers.” The health risk identified is transferred to a large group of individuals. The group shares in the financial losses suffered by a few members of the group, reducing the cost to any individual or family.

Comments

Updated July 2006

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