Is purchasing insurance gambling? There certainly seems to be some similarities. An insurance company (the house) takes a wager (insurance premiums) from its customers (the bettors) that something bad will happen to them. It could be an auto accident, flood, fire, injury or even death. If the covered calamity occurs within the parameters of the ”bet” (the insurance policy), then the insurance company is required to pay off on the wager.
Insurance companies, like casinos, make extensive use of statistics like mortality tables and other data to determine the “odds” of such an event occurring. It is here, however, that the similarities between the two begin to separate.
While a casino wants the odds in their favor to make a profit, an insurance company pays attention to statistics to ensure they can continue to provide services to all of their customers. While a trip to a casino can make you a winner, an insurance policy is only designed to restore the insured to pre-calamity status. Finally, perhaps, the biggest difference is that for a bettor to “win” against an insurance company, they are to some degree, required to lose.
In short, insurance isn’t designed to make you a winner. It is designed to help minimize the financial impact of any covered loss. One could argue that NOT having insurance is actually gambling.
Insurance policies are simply loss prevention products that can keep a significant financial loss from negatively impacting your life. It is considered so essential that virtually all states require their drivers to carry it. Banks and mortgage companies require mortgage holders to have properties covered by it. Rental car companies require it before they will allow you to rent a car. There are even companies that carry life insurance on their key employees to minimize the risk of losing them.
Are you gambling by not having sufficient coverage? Contact us and let’s discuss your situation. Let’s take a closer look at where you may be at risk. Let us go to work for you in discovering affordable ways to better protect you and your assets. Don’t risk waiting any longer.