Well, actually it's a little more complicated. First of all, different kinds of insurance are a lot different. Start with life insurace.
There are two kinds of life insurance. Whole life and term life. Term life is an arrangement whereby you pay for your life insurance for a certain period and after that period, you have none. Whole life is insurance under which you pay for insurance for a certain number of years but you will always have your insurance.
Health insurance is certainly different. A lot of people buy insurance through their employer, if it is offered as a fringe benefit. That's called group health insurance and, in theory, you will not be turned down for a pre-existing health or medical condition. Of course, you have to be in sufficient health to hold down a job. Buying insurance individually is another story and you may need to undergo a medical exam.
Then there is accident, liability, homeowners and all the other forms of insurance, almost all of which has to be purchased individually. All sorts of circumstances enter into your premium rates such as where you live, how much you drive, how close the fire station is, what your house is made of and so on and so forth.
Insurance is a regulated industry but itis also a profit-making industry. Not all hospitals are, by the way. Insurance does not eliminate risk. It merely spreads the risk of loss among the participants in the plan. Your risk of having your house burn down is the same whether or not you have insurance. The difference is that if you have no insurance you suffer the entire loss. Your risk of dying is usually 100% but your risk of dying within a certain time period is predictable. All of this stuff enters into premiums.
Yet another thing that makes insurance complicated is that it is like a sandwich. You can have just about anything on it you like, if you can afford it, though not all insurance companies will insure everything or anything. Some specialize and most are only licensed to sell insurance in given states.
Just wanted you to know there's a lot to the insurance business.