Insurance Glossary

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Insurance Term - Risk

For a health insurance company, risk is the chance of loss, the degree of probability of loss, or the amount of possible loss. For an individual, risk represents such probabilities as the likelihood of surgical complications, side effects of medicines, exposure to infections, the chance of suffering a medical problem because of a lifestyle or on account of an accident. For example, an individual increases his or her risk of getting cancer if he or she chooses to smoke cigarettes.

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