Quote:
Originally Posted by GlennD
An interesting point on this - almost every type of insurance is intended to be purchased and hopefully never used. I hope I never get in an auto accident but I'm insured just in case. I hope my home never suffers a catastrophe, but I have fire/flood insurance just to cover myself just in case. I REALLY hope my life insurance is never needed  but if I get hit by a bus on the way home today, I know my wife will be able to keep our home and have time to figure out how to support the family as a single parent.
But I have health insurance because I know that I (and my family) will have multiple visits to a doctor during the year, and insurance helps manage my own costs. A health insurer has a totally different set of costs and payouts than any other type of insurance company. |
Well, actually, the figures on that are more in line with life insurance. Everyone dies, eventually. They just make a bet wiht you that you won't before the term insurance laspses. After that, they are a money management scheme that benefits everyone involved.
The gamble is on how soon. Health insurers are gambling that you are amongst the 80% of people who utilize 20% of the health care dollar, rather than vice versa when they make that book. Or that you will not get sick before Medicare kicks in, which actually skews the book much in their favor.