The principal goal of life insurance is to protect the dependents of an individual from the financial consequences of a premature or unexpected death of that individual. This seems like a generally fair system. Retirement insurance and pension funds. The principal goal of retirement insurance, pension funds, and similar products, is to provide financial support for individuals and their dependents after full time employment is no longer desired or possible. Here, those individuals who die relatively soon after the cessation of employment support the continued payments to those who live much longer in retirement.
Health insurance is more complex than life and retirement insurance.
Medical insurance covers the costs associated directly or indirectly with healthcare - physicians, drugs, hospitals, diagnostic tests, and so on. In general, there is likely to be a fair degree of correlation between individuals who have high medical care costs, and high disability costs. Thus these two types of insurance will tend to not show compensating effects because a significantly larger portion of funds are spent on high risk individuals than their healthier, lower-risk counterparts, even in the long run. The average cost of maintaining a desired quality of life should be computed. The expected cost for a person to maintain this quality of life would also be computed based on genetic and lifestyle risk factors.