All insurance provides protection against some of the economic consequences of loss.
Insurance is a financial product that provides protection against the risk of financial loss.

Fear is the Key!

Risk factor associated with Insurance:-

Risk always when there is uncertainty about the future.

Risks can be of two types:
• Speculative Risk: Loss , Gain, No Change
• Pure Risk: Loss , No Change

The purpose of insurance is to compensate for Financial Loss, not to provide an opportunity for financial gain.

Health Insurance

Health Insurance covers the risk of financial loss resulting from the insured person’s sickness, accidental injury or disability. There are 2 major types: Medical Expense Coverage and Disability Income Coverage.

1. Medical Expense Coverage: Provides benefits that pay for the treatment of an insured’s illness or injuries.

2. Disability Income Coverage

• Provides a specified, periodic income replacement benefit to an insured that becomes unable to work because of an illness or accidental injury.
• Deductible: A Flat amount that the insured must pay before the insurer will make any benefit payments.
• Coinsurance: Requires the insured to pay a percentage of all expenses in excess of the deductible.

At last I would only like to conclude that insurance can be of various types. One has to decide the type of insurance as per his/her use and risk associated.