Beating the odds?

I have a problem with insurance. No, I am not fighting with my insurance company over a claim. I mean I have a problem with the concept of insurance. Think about it, you have to lose in order to win.

I first noticed this a number of years ago while talking to an insurance agent trying to sell me a life insurance policy. These policies are misnamed, you are not insuring a life of a person, you are insuring against a loss of earnings by that person. You are not protecting yourself from harm, you are insuring your family will be less financially harmed by your loss of life. These policies are financial insurance.

One of the things the agent said in his attempt to sell me a policy really bothered me. He talked about getting killed in an accident the day after buying a policy. I am not sure about others but betting against my living a long life is not something I want to do. That is what we do when we purchase life insurance, isn't it? We are betting we'll die well before we pay a lot of money to the insurance company. The person buying the policy will never collect unless they are buying the policy on someone else's life.

It's just a scary thought.

The insurance company's game is simple: they expect you to live a long, long time. They have actuarial tables that help them determine the odds are in their favor. Like casinos have statistics that show they have the advantage in gambling. The house wins in the long term. So do insurance companies.

We are just pushing money into the slot machine.