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The same logic can't really apply to insurance - one is an investment with expected return, the other is risk mitigation.
by bhayden 12y ago
The same logic can't really apply to insurance - one is an investment with expected return, the other is risk mitigation.
- Chinjut 12y agoYou are happy with insurance because you see it as reasonable to prefer the risk profile it offers over that of forgoing it. But one might just as well also prefer the risk profile offered by a lottery ticket over that of forgoing it. Why not prefer a slim chance of a tremendous windfall and large chance of negligible loss to a guaranteed status quo? People can prefer whatever they want.