What benefit does a high-risk person gain from insurance?

A high-risk person benefits from insurance primarily by gaining access to coverage when they may otherwise be unable to obtain it. Individuals who are classified as high-risk—often due to factors such as health issues, past claims, or dangerous professions—might find it very challenging to secure insurance. Insurance companies typically view them as more likely to file claims, which can lead to exclusions from typical coverage options.

By offering insurance to high-risk individuals, insurers manage the risk involved through higher premiums or specific policy conditions tailored to the individual’s circumstances. This access to insurance allows high-risk people to mitigate the financial consequences of potential future losses, which they might not have been able to do otherwise. Therefore, the key advantage they receive is the ability to protect themselves and maintain financial security, despite their higher risk status.