Does health insurance involve pure risk or speculative risk for the insured? Explain

What will be an ideal response?


Answer: Health insurance involves pure risk for the insured. Pure risk involves a chance for either loss or no loss; there is no possibility of gain. The insured pay their premiums whether they are healthy or sick. They never gain anything by paying health insurance.
Explanation: Most people who have health insurance get it through their employer.

Business

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