3 ms·

Insurance is interesting and has an interesting history. It started as a form of speculating or gambling and it's still a form of "betting." Like casinos, an i

Insurance is interesting and has an interesting history. It started as a form of speculating or gambling and it's still a form of "betting." Like casinos, an insurance company needs to design their product such that "house wins" in the aggregate. They need to take in enough income to pay employees, keep the lights on, pat out claims and turn a profit. So they need good info on how to price it such that it is sustainable. One way they make it sustainable: they conservatively invest part of the money they take in to defray costs.

h2odragon 3y ago
There's religions that get exemptions from "insurance required" laws because they view it as gambling. They often do a mutual assurance bonding thing instead. Insurance companies use a whole different kind of statistics than many of the other sciences do; "actuarial science." "Statistics" is all about making your numbers appear to support your hypothesis, whereas actuarial is about finding the data hidden in those numbers.
- DoreenMichele 3y ago
  I worked in insurance. I'm not crazy about insurance, actually. If you can find another means to cover your needs, I recommend you go with that. If you can't, there are scenarios where insurance makes sense. Example: If you want life insurance solely to cover your funeral, just do a prepaid funeral. If you have dependent minors, ideally you should have life insurance to help them should you die.
  - dctoedt 3y ago
    I tell my students that insurance is simply a backup pot of money — that I doubt very much that, say, Bill Gates carries any kind of insurance at all, because he has other assets that he can use for any conceivable human need.
- m463 3y ago
  I believe the amish don't use insurance. They also don't do social security (although I'm uncertain if they pay, or just don't use it)
  - sgerenser 3y ago
    Self employed Amish are exempt from social security taxes. I did not realize it until searching, but Amish employers are not exempt per a 1982 Supreme Court case: https://www.ssa.gov/OP_Home/rulings/oasi/45/SSR82-44-oasi-45.html https://www.ssa.gov/OP_Home/rulings/oasi/45/SSR82-44-oasi-45...

h2odragon 3y ago

There's religions that get exemptions from "insurance required" laws because they view it as gambling. They often do a mutual assurance bonding thing instead. Insurance companies use a whole different kind of statistics than many of the other sciences do; "actuarial science." "Statistics" is all about making your numbers appear to support your hypothesis, whereas actuarial is about finding the data hidden in those numbers.

DoreenMichele 3y ago
I worked in insurance. I'm not crazy about insurance, actually. If you can find another means to cover your needs, I recommend you go with that. If you can't, there are scenarios where insurance makes sense. Example: If you want life insurance solely to cover your funeral, just do a prepaid funeral. If you have dependent minors, ideally you should have life insurance to help them should you die.
- dctoedt 3y ago
  I tell my students that insurance is simply a backup pot of money — that I doubt very much that, say, Bill Gates carries any kind of insurance at all, because he has other assets that he can use for any conceivable human need.
m463 3y ago
I believe the amish don't use insurance. They also don't do social security (although I'm uncertain if they pay, or just don't use it)
- sgerenser 3y ago
  Self employed Amish are exempt from social security taxes. I did not realize it until searching, but Amish employers are not exempt per a 1982 Supreme Court case: https://www.ssa.gov/OP_Home/rulings/oasi/45/SSR82-44-oasi-45.html https://www.ssa.gov/OP_Home/rulings/oasi/45/SSR82-44-oasi-45...