Insurance is a Scam

Ryan you are completely missing the real point and debating something no one who is actually smart cares about. Although I admit many people just say ‘insurance is a scam” – they don’t know what they mean. They can’t muster up enough mastery of english and th system at hand to figure out why exactly “insurance” as we see it, is a scam. So I understand why you adress it as so, seeing as the overwhelming population is waggng their finger at imaginary bad guys.

The problem is that insurance companies have overrun government, law, and the common’s man life. They have convoluded the though processes of so many people that we no longer understand how natural rights function in a society. We are made scared of phantom situations and now have no real choice.

The debate with health insurance for many is whether it should be MANDATED upon people, epecially those who are perfectly healthy and young. Car insurance is MANDATED by law (virginia didnt make it so untill the 80′s). Some people really have no recollection of natural rights and personal sovereignty, to the point where they will argue that “you aren’t forced to drive, so car insurance really is a choice.” MY FUCKING GOD. those are the kind of psuedo logical argument that make this fucked up world still spin when obviously so much is wrong with it’s systems and modus operandi.

Also, in terms of car and health insurance, it is purely scare tactics – The larger, never mentioned problem stemming from some sort of moral idea. You get in a car crash, and he has no insurance, and ruins your life because of whatever fantasy I want to come up with to scare you (or whatever true life story you can muster up from insurers and real life folk). Old fat stupid people die and cost you millions of dollars because we “have” to treat them and save them (with tax money? or something. Idk). Therefor in light of all this, you should pay private companies up the ass to save OTHERS. notice that with these to forms of insurance it isn’t really about you.. It’s about making sure OTHERs have insurance companies that will pay you.

Really, it is the same as inyour story, having that other guy have “fire insurance” for the fires he may cause the burn down someones house. The concept of insurance is to cushion yourself, but nowadays with car and health insruance, the idea is that you are cushioned and saved by other people insurance sometimes, and sometimes your own. Yes liability matters, but now insurance is hardly something you choose yourself.

The concept of insurance is not a scam. The idea is we pool our money together and pay out damages, because, WE KNOW it is unlikely these things will happen to us. That is the main premise which has been completely lost over time. Insurance was never ever ever meant fir the majority. KNOWING that i willmost likely throw away money by paying insurance, I still do it because the loss i would experience was more meaningful than the money spent. This was started by merchants who would have lost their livelihood. Insurance companies should be much more like credit unions. Let’s be honest (ha), banks shouldn’t really exist either as they do now. It is complete shit over the way things should be. But greedy men fuck everything up and there is no justification other than their inhernt greed. THE CONCEPT OF INSURANCE NEGATES THE IDEA OF A FOR PROFIT INSURANCE COMPANY. any company focused on bullshit milton friedman capatalism cannot exist to help you, their soul purpose is to MAXIMIZE PROFITS FOR THEMSELVES. The only way such a thing can happen is by cutting every corner to make sure I dont pay you money. and that you pay me but i never ever pay you, or that when i do pay you it is based off how much you have payed me and will continue paying me, so I can always keep you in debt to the company. If I keep just 3 people in debt to me I can pay off one person above their overall contributions and still turn profit.
If you cannot see how these companies acting in their own interests is completely paradoxical to insurance and demotes the worth of such a thing to the point where people are almost better of not having it then you are to thick to get through.

Insurance is good for my house if im in a flood zone, hurrican place, annual fire place. But where i am, when the world is on fire and flooded and tornados everywhere, My house will be fine, on top our little hill, no chance for flood fire or storm. If it happens now, WELL IVE SAVED TENS OF THOUSANDS over the last 30 years not paying for home insurance, and have money to cover damages and problems. I would reccomend to many who dont live where I do though to buy home insurance because as you said, in the case of that fire, You couldn’t hope to have anything more than coverage. 

Very, very good post. I’ll be using your quote “Price matters but proper coverae matters more”. I also can attest to the selling the value of insurance. My client Daniel had a Christmas Eve house fire. Visit http://www.facebook.com/album.php?aid=136586&id=111986893000 to view the photos.
Because he was properly insured with Replacement Value coverage you can read the blog post about how is premium of $600 returned $30,000+ within 2 years and gave his young family peace of mind in a very troubling time. http://www.beelerinsurance.com/blog/Where_The_Rubber_Meets_The_Road.aspx

Hi Ryan,

Good example! I have another to share. I have a client who recently went through a total fire loss on his commercial building. Because he listened when I argued the point with him he WAS properly covered. This could have been more catastrophic due to timing. Three weeks prior to the fire he had just signed a contract to sell the real estate to the tenant who was now operating his former business of which he had invested his sweat and money for 30 years. This real estate contract was essentially a hinge pin in his retirement plan. So you can imagine when the building burned to the ground he was devastated and of course panicked about what would follow. All is now resolved with the recent fire investigation and he will be able, based on the coverage we placed, to continue with his plans to retire over the next twelve months. At the time we placed the coverage he could have saved another $ 1000 on premium if we had insured it the way he wanted. His concern at that time was to reduce his expenses as he was preparing to retire. Had I not argued with him and convinced him to insure correctly he would have come up short by nearly $ 130,000 in his claim which would have set his retirement plans off by at least 5 years. When people get focused on the negative of insurance ( paying the premium ) they lose sight of the big picture and minimize their risk as a doubt. This is when you have to do everything you can to reach them to get them to protect themselves. Obviously he is very pleased that he listened and has since thanked me several times. I am also relieved that my resolve in the argument when we placed the coverage have resulted in a positive outcome for the client. i will use this example for years to come when speaking with clients about their risks and how to cover them. i want to thank you for all of your posts as they illustrate the true needs that clients and sometimes agents tend to overlook.

Awesome as usual. Thanks! And don't worry, you're not the only one to get that argument. It's an occupational hazard. I even get it from my Father-in-Law, the attorney. hahahaha I send him claim scenarios constantly,

Very, very well said Jim… Thank you!!!