Unlike Government services, whose charges bear no relation to the cost of providing what’s being offered, private insurance is based on cost experience to the company. Therefore, the consumer can easily shop the exact service wanted, at its lowest charge.
Thus, the higher the deductible in a policy, the less administrative and outlay expense to an insurance company and the more the consumer can receive per premium dollar. The principle makes it possible for the purchase of maximum coverage for catastrophic events.
Policies that pay for every small bill cannot accomplish this for the insurance consumer. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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