The demand for health care insurance exists because of the uncertainty associated with an individual’s state of health and the risk of very large expenditures in the case of illness and sickness (Dewar, 2010). The health insurance usually provides risk sharing between the insured and insurer, pooling risks among the insured, and sometimes risk sharing between the insurer and the healthcare providers (Getzen, 2010). In other words, people buy insurance because they are risk-averse. Sometimes there may be a demand for health care insurance without a need. On the other hand, there may be a need and not demand for health insurance due to supply factors such as the availability of the services to meet the needs (Johnson-Lans, 2006). This demand of health insurance simply means that it is the willingness and ability to pay for health care. The factors that create the demand for insurance would include the cost or price of health care, income levels, social status and education (Morris, Devlin & Parkin, 2007).