With these overriding principles of insurance including risk assessment, big deductibles and broad coverage, let's take a look at health insurance.
Although many people don't need some kinds of insurance like life insurance, everyone needs health insurance. Catastrophic health care is too expensive otherwise. But you still should buy your health insurance intelligently.
First, get it through your employer if possible. If you do it this way, the insurance is a tax-free benefit. It will cost more on an after-tax basis if you have to buy it yourself.
You also should look into medical savings accounts. These are new accounts that currently are open only to self-employed people and those who work for small businesses.
MSAs allow you to receive tax-free contributions from your employer which are funneled into a special account. The money in the account grows tax-free, and you aren't taxed on withdrawals from the account if the funds are used for health care.