Having Insurance is a losing Battle

by Quinton Figueroa on June 6th, 2007

Maybe I'm missing something, but insurance makes absolutely no sense to me whatsoever. If insurance made sense, the insurance company would come out even, but they don't! It's an extremely lucrative industry.

How it works

Insurance companies basically make their money from a bunch of cautious employees sending them monthly checks in the case that some disaster or tragedy happens - it sounds respectable but this money adds up fast! In one year an average person can easily spend $2,000 just for life insurance! That's a lot of money. Do they actually use any of this? In most cases no. If they did they'd come out even and the insurance companies would come out even. Am I missing something here?

Guess what?

The insurance companies DO NOT come out even. In fact it is one of the most lucrative industries in America. The average cost per click for Insurance on Adsense is $17, higher than that of Mortgages, Loans and Real Estate. Where's all this money coming from? YOU! It's works just like taxes and it's not cool.

Why not just pay when you need to pay? Rather than putting your money into a liability hoping that someday it will payoff because you actually used your insurance. Just get rid of it all and pay as you go.

What if I have to pay thousands of dollars for surgery!?!

Once again, If this were true and it added up to more than the total amount the insurance companies average per person they would be in an unprofitable industry and close shop. Fortunately for you, they're not closing shop any time soon and you can continue paying :)!

Depending on your current health and circumstances it may make sense to get insurance at a certain point. But not when you're a healthy 20 year old. Do it when you're on your last straw and about to go down. Milk them right back!

Conclusion

Millions of American's are going to make me rich when I get into the insurance industry because of their fear that they need somebody else to take care of them.

Filed under: Misc, Insurance

About The Author

Quinton Figueroa

El Paso, Texas

I am an entrepreneur at heart. Throughout my whole life I have enjoyed building real businesses by solving real problems. Business is life itself. My goal with businesses is to help move the human ...

: Insurance

You have a good argument, and I definitely agree with your last point of getting insurance later in life, and not when you are in your 20s. I would also recommend this as long as you don't take large risks (like skydiving or work construction), and you take care of yourself. :) You will need to have a savings account set aside though to offset any temporary medical or dental emergencies you might have.

Well written article :)

: Your title

You state that having insurance is is a losing battle, however focus on medical insurance. Would this apply to all types of insurance? Car, Home, etc? Also, I have a friend, 31, who came down with a serious illness that Doctor's could not diagnose. In a year's time his medical bills were approximately 80,000 dollars. Had he not had insurance he may have died. Comment?

Quinton Figueroa: I'm sorry to hear about your

@ (view comment)

Yes, it would apply to all insurance. The difficulty with car insurance and some other types is it is the law therefore you pretty much have to have it.

I'm sorry to hear about your friend's illness. What was the illness and was there anything leading up to it? Things don't usually happen out of the blue like this.

Also, how did the insurance company expect to make any money off this $80,000 price tag?

Anonymous: I guess you didn't pass high school English

It's "losing", not "loosing".

"Loose"= what my mom is
"Lose"= to not know where something is, to misplace, etc

Quinton Figueroa: Thanks for pointing that out

@Anonymous (view comment)

Luckily your post has no mistakes... or does it?

Anonymous: well you're a cunt

@Quinton Figueroa (view comment)

Thanks for "fixing" my comment. It's nice to know that bloggers like you strive to keep comments as they originally were. ;)

This blog is a piece of shit.

EJ: Ok...

First off yes, insurance is a pain in the ass; however, it is a REQUIRED pain in the ass. Last I check not having car insurance is a crime. Secondly good luck trying to GET insurance when you're "on your last straw." Generally insurance companies won't give you insurance then. Want to know why? Because then they'd pay more than you give them! Yes insurance is totally BS MOST of the time. But next time I destroy your car and don't have insurance and you're stuck paying out of your pocket (or paying more to your insurance company because you make them pay for damages...) you'll be wishing I HAD gotten insurance.