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View Diary: Health Insurance is Socialism (41 comments)

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  •  Insurance is collectivism. (3+ / 0-)

    Your health, home, auto and even term life insurance aren't savings accounts.

    If you never have a claim, you don't get any cash back (yes, there are rare exceptions. i'm saying generally).

    If you stop paying premiums, you don't get to withdraw what you put  in. If you have a small claim (a kitchen fire), they don't give you money to upgrade to a fancy new granite counters, stainless appliances, Italian tile kitchen because you have paid tens of thousands of dollars for decades in premiums and have never had a claim thus far.

    You pay to protect the whole pool of policyholders against possible (not inevitable) loss.. So does every other policyholder. Life insurance insures your beneficiaries against catastrophic financial loss from losing you.

    It doesn't insure you. You'll have no need for cash when the life policy pays out. The difference between life insurance and other insurance is that death, of course, seems to be inevitable for most of us, thus far.

    © grover


    So if you get hit by a bus tonight, would you be satisfied with how you spent today, your last day on earth? Live like tomorrow is never guaranteed, because it's not. -- Me.

    by grover on Thu Aug 22, 2013 at 11:22:27 AM PDT

    [ Parent ]

    •  Life insurance doesn't insure you against dying (1+ / 0-)
      Recommended by:
      Alice in Florida

      it is supposed to insure you against dying early.  Like fire and theft insurance, the insurance company is betting that the thing you are insured against never happens.  You are betting that it will happen.  Most people are happy to lose that bet.

      •  Um. Ok. (0+ / 0-)

        Not what I said.

        The difference between life insurance and other insurance is that death, of course, seems to be inevitable for most of us, thus far.
        I didn't really see a need to get into the whole underwiting and actuarial philosophy and science of each line of insurance in a single comment.  But I thought I made it pretty clear the underwriters weren't insuring the assured against the risk of death itself

        The main point is that insurance is a pool into which all policyholders pay in, and there are plenty of reasons why one may never receive their premium dollars in return.

        It's collectivism.

        © grover


        So if you get hit by a bus tonight, would you be satisfied with how you spent today, your last day on earth? Live like tomorrow is never guaranteed, because it's not. -- Me.

        by grover on Thu Aug 22, 2013 at 12:08:34 PM PDT

        [ Parent ]

      •  For life insurance (1+ / 0-)
        Recommended by:
        pee dee fire ant

        what the insurance company is betting on and basing their odds on is timing. If you live a long time, the payout is long-delayed, and in the meantime they keep collecting premiums and investing the money at a goodly clip.

        And for term insurance, there's a good chance they'll never have to pay out at all. My then-husband and I pretty typically carried substantial term insurance while we had kids to support (and a mortgage), paid the premiums every year, and mercifully never had to make a claim. Once the kids were no longer dependent on us, we dropped it (at least I did, I don't know about him since our divorce). So the company won that bet. Was it worth it for peace of mind? Sure.

        On the other hand, the cost was pretty minimal -- a few hundred dollars a year, as I recall.

        Health insurance is asking me (soon, requiring me) to pay a huge amount to cover everyone else's very expensive medical care, a lot of which is due to lifestyle choices (alcohol + guns, alcohol + driving, smokers, diabetics and renal failure and obese folks who have the means to take care of themselves but don't, etc.) and a lot due to overly aggressive marketing by drug and medical equipment companies for "treatments" that don't really create health, just profits. I'm not really comfortable with that model, though with the subsidy I will probably sign up through the exchange.

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