Insurance, why only cover 36 illnesses?

So after i have decided to join, then only i knew we had to sit for an exam to be an insurance agent..

Mind you, I had left my last study table for almost 5 years, and now my agent/ currently my leader, gave me a 250-pages of a book which i need to study and memorize for my coming exam.

The agony was indescribable , for every 2 pages, my eye lid felt like a it had gained few kilos of weight.. after countless cups of coffee, countless nights and day, and finally ... i begin to have a clearer picture ofwhat INSURANCE is all about..

it was a blessing in disguise.. finally i understand and am able to answer my first question to my insurance agent..

"why they cover only 36 illness.. why so little, why dont cover ALL the illnesses in the world?"

Insurance is built upon the LAW of LARGE NUMBER

Let say there are 10 people, each pay RM100 each = so there is RM1000 in the pool.
Then if 1 person from that 10 got sick , and he needs RM300 to treat this illness,  that RM300 is taken from this pool of RM1000 to pay for the person medical needs.

The good thing about this system is, one person with a RM100 saving, he wont be able to pay for the Rm300 medical bill, so insurance use the money from the pool to pay for this.

The disadvantage would be, then it would be unfair for that 9 person who contribute Rm100 and their money is use for other's need. Right??

If you are the pitiful 9 person who paid Rm100 for no good reason, then you are being taken for a ride, right?
what if you are that unlucky one? if initially you didnt pay that RM100, now you have to fork out an extra RM200 to treat your sickness.

this is a layman (me) understanding of the LAW OF LARGE NUMBER.

Secondly,

Just imagine, if Insurance is used to pay for ALL the SICKNESS in the world, do you think that RM1000 from the 10 person pool will be enough to pay for everyone sickness?? Probably everyone of that 10 persons will need to pay RM1000 (10x the actual money they pay to pool in order to compensate for EVERYONE, EVERY sickness)

So in insurance, the Actuarial, the brains behind the insurance industry, will find out the MOST COMMON CRITICAL ILLNESS that most people within the local community will suffer and the appropriate affordable premium that the community members could pay.

So back to the questions, if we want INSURANCE to cover everything from Flu to AIDS,
are you willing to pay RM15000 a month than Rm150 a month for protection against the most common 36 critical illnesses like heart attack, stroke and cancers.. ?

Now i understand why they dont cover for all the illnesses in the world, because, insurance is like a seat belt in a car, in case of accident, it gives you a form of safety from the crash and not a set of 20 air bags in a kancil that made your crash felt like a bump on your toe.

hope this helps to clarify some doubts .. :)