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You can choose to live your life without insurance, in which case you have to bear all the damage from bad events but you also benefit fully from good events, o
by Almondsetat 2y ago
You can choose to live your life without insurance, in which case you have to bear all the damage from bad events but you also benefit fully from good events, or you can live your life with insurance, taking less losses from bad events and getting less from good events.
As said, it simply reduces variance in your life/business. You have to choose if that's how you want to live your life.
- BugsJustFindMe 2y ago> it simply reduces variance Mostly I agree. That doesn't make it not gambling though.
- pdonis 2y ago> That doesn't make it not gambling though. Yes, it does. As I said in response to you elsewhere, insurance means not accepting huge variance in payoff, whereas gambling means you do accept it. They're opposites of each other. The fact that the counterparties in both cases--insurance companies and casinos--end up making money from all of their customers on net does not mean the two things are the same.
- Almondsetat 2y agoIf gambling and insurance were the same you would be able to both frame insurance as a form of gambling and gambling as a form of insurance.
- BugsJustFindMe 2y agoI believe I said that insurance is gambling, not that all gambling is insurance. If not I apologize. So I should be covered by what I already said elsewhere, that buying insurance is betting (aka gambling) that a bad thing will happen sooner rather than later or never. Now is all gambling insurance? Hmm. Maybe betting that something will happen is equivalent to insuring against its happening not financially benefiting you. Boom.
- vbezhenar 2y agoIMO the main difference is that insurance provides two good outcomes while gambling only one. So you're buying car insurance. There are two outcomes: either your car will survive another year or you'll crash. First outcome: you're happy because you've got a survived car. Second outcome: you're happy because you've got insurance payout. Now you're buying lottery ticket. First outcome: you won the lottery and you've got the prize. Second outcome: you didn't win the lottery and you lost your money spent on lottery ticket.
- lucianbr 2y agoThere are multiple comments in this thread doing exactly that.
- lostmsu 2y ago> You can choose to live your life without insurance No, in many cases you can't. Health, car, homeowners, and renter's insurances are mandatory until you are wealthy.
- seanmcdirmid 2y agoHealth insurance isn’t mandatory in the USA. It’s a bad idea not to have it though. You might get away without insurance when you are young, however, assuming nothing bad happens. Without being able to price discriminate on pre-existing conditions, however, it’s not really free market insurance anymore. Liability Car insurance is mandatory only if you use public roads, which most people do. Collision insurance is only needed if you have a bank loan. Homeowner’s insurance is needed for a mortgage, renter insurance is required by a landlord. You can avoid most of these insurances if you are really rich, but most rich people carry even more insurance because they have more to lose, so they will have umbrella policies, for example. Ironically, it’s the really poor who can get out of having insurance: many states aren’t going to throw you in jail if you drive without a license or insurance, so now other people need uninsured driver insurance. Heck, it’s way too common where I live that many people have no insurance, even if our state requires really low levels of coverage. Health insurance is only needed if you have assets the hospital can sue for, but you will be going to the ER for everything so that sucks.
- lostmsu 2y agoWell sure, if you are willing to violate a few laws you don't have to get insurance.
- deleted 2y ago[deleted]