Health insurance companies operate by “pooling risk”. When pooling risk, individuals pay monthly premiums, and in return, the insurer covers part or all of their medical costs, depending on the policy.
In cases of terminal illness, insurers typically continue funding expensive life-extending treatments as long as they are medically recommended and fall within the coverage terms. These treatments may include chemotherapy, intensive care, or experimental drugs, which can incur significant ongoing costs for both the insurer and the insured.