601
Why is it apparently cool and fine for insurance companies to spend countless billions, trillions of our money constantly buying ad time?
It's not your money, it's their money.
load more comments
(4 replies)
It stopped being your money when you gave it to them. It became their money, and they get to spend it how they want, with some caveats.
For an insurance company to exist it has to spend less covering claims than it collects in payments.
Otherwise they end up bankrupt.
Even if you got back every dollar you spent on insurance, there would be nothing left over to spend on staff or any other part of their business.
This means anyone with insurance is better off taking their payments and saving it for when they need something covered.
Insurance is a scam.
Insurance companies, specially life, usually have claim ratios (claims/premiums) of over 100% without problems, because they earn more money on investing the premiums over time that on the premiums itself.
I’ve worked as a claims adjuster. It was my job to find ways to deny claims so that my employer could make more profit. My employer was very clear about that.
Even if the insurance company is profitable, they will always want more.
Publicly traded insurance companies have an obligation to their shareholders to make larger profits year over year. The shareholders never say “we’ve made enough profit on investing, we dont need more profit”.
If you consider only the mean, then of course you're going to be better off without insurance on average. But most of us don't care about the mean. We care about the variance. And when you buy insurance, you're reducing the variance in your life in exchange for a lower mean. The problem with insurance isn't insurance itself, but that often you pay and get nothing in return.
Well, it really depends on the risk of what you’re doing. Some things could really quickly get you into millions of $$$ in legal fees and other expenses for a tiny slip up, and it would be really stupid not to have some sort of backup plan to cover yourself.
load more comments
(10 replies)
this post was submitted on 27 Nov 2023
601 points (97.0% liked)
No Stupid Questions
35868 readers
476 users here now
No such thing. Ask away!
!nostupidquestions is a community dedicated to being helpful and answering each others' questions on various topics.
The rules for posting and commenting, besides the rules defined here for lemmy.world, are as follows:
Rules (interactive)
Rule 1- All posts must be legitimate questions. All post titles must include a question.
All posts must be legitimate questions, and all post titles must include a question. Questions that are joke or trolling questions, memes, song lyrics as title, etc. are not allowed here. See Rule 6 for all exceptions.
Rule 2- Your question subject cannot be illegal or NSFW material.
Your question subject cannot be illegal or NSFW material. You will be warned first, banned second.
Rule 3- Do not seek mental, medical and professional help here.
Do not seek mental, medical and professional help here. Breaking this rule will not get you or your post removed, but it will put you at risk, and possibly in danger.
Rule 4- No self promotion or upvote-farming of any kind.
That's it.
Rule 5- No baiting or sealioning or promoting an agenda.
Questions which, instead of being of an innocuous nature, are specifically intended (based on reports and in the opinion of our crack moderation team) to bait users into ideological wars on charged political topics will be removed and the authors warned - or banned - depending on severity.
Rule 6- Regarding META posts and joke questions.
Provided it is about the community itself, you may post non-question posts using the [META] tag on your post title.
On fridays, you are allowed to post meme and troll questions, on the condition that it's in text format only, and conforms with our other rules. These posts MUST include the [NSQ Friday] tag in their title.
If you post a serious question on friday and are looking only for legitimate answers, then please include the [Serious] tag on your post. Irrelevant replies will then be removed by moderators.
Rule 7- You can't intentionally annoy, mock, or harass other members.
If you intentionally annoy, mock, harass, or discriminate against any individual member, you will be removed.
Likewise, if you are a member, sympathiser or a resemblant of a movement that is known to largely hate, mock, discriminate against, and/or want to take lives of a group of people, and you were provably vocal about your hate, then you will be banned on sight.
Rule 8- All comments should try to stay relevant to their parent content.
Rule 9- Reposts from other platforms are not allowed.
Let everyone have their own content.
Rule 10- Majority of bots aren't allowed to participate here.
Credits
Our breathtaking icon was bestowed upon us by @Cevilia!
The greatest banner of all time: by @TheOneWithTheHair!
founded 1 year ago
MODERATORS