Insurance companies provide a no interest capital sum in exchange for a small yearly contribution.
Insurance is a bet just lioke on a horse race except in reverse. it is also a means of capital raising. insurance is also a means of wealth redistribution almost like one of those pyramid schemes where everyone sends 5.00 to the person at the top o the list eventually you come to the top and (supposedly) get a large amount.
All the people who dont claim are paying money to the people who do claim.
1. i bet you $325.00 each year that my house will burn down.
2. i bet you 1500.00 each year that i will get really sick.
Now, if my house does burn down or i get really sick i need to either go to the bank and borrow money to rebuild pay bills or somehow come up with a large amount of money in a short period of time. insurance companies provide the lump sum in exchange for a yearly contribution
Think about becoming your own insurance company. This is called self insurance
Try this on for size.
put 1000.00 into a share portfolio each year and reinvest the return. after 10 years you have capital $10,000 plus whatever the compounded return may have provided say averaged at 8% per annum, thats probably around 2000. so now you have $12,000. enough to pay a fair swag of medical bills. Continue compounding and adding 1000.00 per year. Add money at 100 per month if that suits you
Of course you need to weigh up the risk that something will happen and you may not have enough money in your self insurance account.
Another benefit can be the ability to borrow using the amount you have saved as collatoral.
For medical insurance whilst you are young i think self insurance is a fairly good bet. i wish i had done it years ago.