Insurance – Paying for Uncertainty On a Monthly Basis

Everyday some one receives a phone call from some insurance company trying to sell them life or health insurance. One wonders though, why we have the mindset that having someone place bets on the fact that you will die one day or you will get sick or get into an accident of some sort and end up in hospital is a good idea.

They tug at our heartstrings about how they will look after your family when you die or how much money they will pay you if you are ever in hospital – and, how much money they might pay you because most people only see the big amount advertised and not the fact that they say “up to” that amount. This basically tells me that they could pay you R100 a day that you are in hospital and there would be nothing you could do about it.

We are being manipulated constantly, where fear of the unknown is used against us to make us feel that we have failed our families if we did not have any insurance when in hospital or when we die. But when it comes to paying out these insurance claims, one finds that the odds are stacked against them because the contract is written in such a way that it gives the insurance company many opportunities to deny paying it. The only seemingly useful insurance is with cars, because cars get damaged everyday – yet even they can give you a headache before they pay out, as much as their adverts say otherwise.

So why do we allow ourselves to be convinced?  Mostly because we are not educated adequately when it comes to financial management. We embrace the easy solution because these companies position themselves in such a way as to say they have our best interests at heart, when in fact, they are only looking after themselves.

The fact is that insurance is a gamble on one’s life and health. The promise is that the insurance companies are providing certainty for an uncertain future. They guarantee that they will be able to cover all those unknown events in the future that will affect you, knowing for certain that something will happen to us all. It is given as the smartest thing that one can do, especially if you are male – the manipulation of the idea that as the provider you are being irresponsible by not guaranteeing your family’s future needs will be taken care of. But there is never a guarantee when you invest your money in companies that can easily cheat you out of what they are supposed to pay. The very people who sell you insurance most probably do not even bother to take up that insurance they sell. The probability is that they save up the money that they are making in some sort of long term investment that will yield dividends while they are still alive.

Even as I write this, I am looking at one of those insurance ads. It is made out to be affordable and one is covered for all those dreaded diseases that everyone seems to be suffering from these days such as cancer. But what if you never get the disease? Doesn’t it say that you have wasted all that money trying to be covered for a illness that you are uncertain about whether or not you will get? As much as the “experts and analysts” say that there are major probabilities that one will get a certain illness, are not these calculations based on uncertainty? These pronouncements are not based on being sure, but a big fat guess.

All we need to learn is how to manage our money. If we save up the money that we would be paying to that health “insurer” we could have enough money to cover our basic medical expenses. We cannot live our lives on the fear that we will get sick because the more we worry the bigger the probability that we will get sick. The only certain thing about the insurance industry is that it is based on uncertainty and the only certain thing about it is that it can always find those who are fearful enough to fall for their manipulative tactics.

And if you notice, the ads always seem to kill off the man first. I’m certain it is on purpose.