|
|
#21
03-12-2007, 06:03 PM
|
|||
|
|||
Re: Is insurance always evil/stupid?
[ QUOTE ]
Um...nay. Any insurance company that tried to take a 600% margin on their life insurance would be undercut by competitors. [/ QUOTE ] While the markup figure is obviously taken off-the-wall and overstated, term-life is still a better deal. Of course, the devil is in the details. 
|
|
#22
03-12-2007, 07:45 PM
|
|||
|
|||
|
Re: Is insurance always evil/stupid?
People that don't believe in insurance believe that life revolves around expected value. They feel that if something is -EV it is incorrect. These are the same people that think when someone pulls a 1 outer on the river that they are cursed or unlucky.
Insurance, nor insurance people are "evil." Insurance is used to avoid catastrophic events that could ruin your life. And like a previous poster said, it may be worth a little -EV to be able to sleep at night.
|
|
#23
03-12-2007, 07:58 PM
|
|||
|
|||
|
Re: Is insurance always evil/stupid?
On average, insurance will be bad. Only take insurance if you have some kind of information that the insurance company doesnt know about.
Example: You are a maniac/reckless driver, so buy insurance for your car. They expect you to be average driver and dont know you go on DUI frenzy so you will win money in EV.
|
|
#24
03-12-2007, 08:00 PM
|
|||
|
|||
|
Re: Is insurance always evil/stupid?
Health Insurance is +EV because insurance companies get reduced rates on services.
|
|
#25
03-12-2007, 08:05 PM
|
|||
|
|||
|
Re: Is insurance always evil/stupid?
[ QUOTE ]
On average, insurance will be bad. Only take insurance if you have some kind of information that the insurance company doesnt know about. Example: You are a maniac/reckless driver, so buy insurance for your car. They expect you to be average driver and dont know you go on DUI frenzy so you will win money in EV. [/ QUOTE ] my point exactly
|
|
#26
03-12-2007, 08:08 PM
|
|||
|
|||
|
Re: Is insurance always evil/stupid?
[ QUOTE ]
People that don't believe in insurance believe that life revolves around expected value. They feel that if something is -EV it is incorrect. These are the same people that think when someone pulls a 1 outer on the river that they are cursed or unlucky. Insurance, nor insurance people are "evil." Insurance is used to avoid catastrophic events that could ruin your life. And like a previous poster said, it may be worth a little -EV to be able to sleep at night. [/ QUOTE ] again the whole point of me making this thread and providing the two examples is to show that insurance doesnt HAVE to be -EV and can be in fact +EV or Neutral EV.
|
|
#27
03-12-2007, 08:24 PM
|
|||
|
|||
|
Re: Is insurance always evil/stupid?
[ QUOTE ]
[ QUOTE ] People that don't believe in insurance believe that life revolves around expected value. They feel that if something is -EV it is incorrect. These are the same people that think when someone pulls a 1 outer on the river that they are cursed or unlucky. Insurance, nor insurance people are "evil." Insurance is used to avoid catastrophic events that could ruin your life. And like a previous poster said, it may be worth a little -EV to be able to sleep at night. [/ QUOTE ] again the whole point of me making this thread and providing the two examples is to show that insurance doesnt HAVE to be -EV and can be in fact +EV or Neutral EV. [/ QUOTE ] It depends on whether the V in EV is solely monetary
|
|
#28
03-12-2007, 08:27 PM
|
|||
|
|||
|
Re: Is insurance always evil/stupid?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] People that don't believe in insurance believe that life revolves around expected value. They feel that if something is -EV it is incorrect. These are the same people that think when someone pulls a 1 outer on the river that they are cursed or unlucky. Insurance, nor insurance people are "evil." Insurance is used to avoid catastrophic events that could ruin your life. And like a previous poster said, it may be worth a little -EV to be able to sleep at night. [/ QUOTE ] again the whole point of me making this thread and providing the two examples is to show that insurance doesnt HAVE to be -EV and can be in fact +EV or Neutral EV. [/ QUOTE ] It depends on whether the V in EV is solely monetary [/ QUOTE ] okay, im not arguing with that, it just seemed to me that people were thinking that insurance is INHERENTLY -EV which is not always the case.
|
|
#30
03-13-2007, 12:00 PM
|
|||
|
|||
|
Re: Is insurance always evil/stupid?
[ QUOTE ]
A while ago pvn made a post saying that buying insurance increases variance, which seems like lunacy to me. I asked him what he meant, but he either didn't respond or I missed the response. [/ QUOTE ] I did respond. Basically, it was a smart-ass way of looking at things from a different perspective. Insurance doesn't actually prevent a big loss; it merely provides you with a jackpot at the same time as you sustain the loss. You're going to have the loss regardless of whether you have insurance or not (well, for the most part; sometimes people will change their habits based on their insurance status). The loss increases your variance. The insurance payout increases it as well - but in the opposite direction; they cancel out, but you still have two instances of variance (where you'd only have one without insurance). Good variance is still variance. Compare two scenarios, one without insurance, and one with. Without insurance: you have a wrecked, unusable car, and possibly a bunch of liability debts. With insurance: you have a shiny new car, and possibly a bunch of settled liabilities. Jackpot!
|
 |
|
|
Linear Mode
