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Is it fair that life insurance for 90 year olds is rather expensive? Yes, because the foremost purpose of insurance is the quantification and management of unce
by tiahura 2y ago
Is it fair that life insurance for 90 year olds is rather expensive? Yes, because the foremost purpose of insurance is the quantification and management of uncertain risk.
If someone has a higher probability of getting sick / dieing / getting in a wreck then the risk is different and should be priced accordingly. If you don’t, you’re not taking about insurance anymore. You’re talking about a wealth transfer system where good drivers subsidize the bad.
- fc417fc802 2y agoTomato tomato. It's insurance on a societal level - the guarantee that your children, for example, will still be able to afford a medical policy the same as everyone else can even if they lose the genetic or developmental or whatever other lottery. There's no divine directive that states that risk sharing must be done by voluntarily joining a pool run by a private entity that's priced uniquely per individual. That's merely one way to go about it. To be fair it's the only sensible way for a private entity to go about it in the absence of legislation that prevents others from being more efficient. In the case of the US specifically, as long as everyone is forced to play by the same "inefficient" rules the free market will continue to work.