 Insurance Part II: Is it better to purchase insurance or to insure myself??? |
| Witnessing the treatment clients in the Gulf Cost are getting from the insurance companies … I was wondering if Insuring myself <Paying myself premiums into my own controlled account> would ... |
|
 Governing body for travel insurers? |
| Is there a governing body/association specifically for for insurance companies, specifically relating to travel insurance policies?... |
|
 Wat is the average cost of medical malpractice insurance for the small business in new york, or across the US? |
Additional Details
What is the average price of medical malpratice insurance if i want to insure my (small business) office in New York?... |
|
 Question for anyone that knows about insurance? |
| I am renting a garage that is not attached to the house and want to insure it. Would this be covered by the house insurance or would you need separate contents insurance as its not near the house. If ... |
|
 Do you have to buy comprehensive insurance when you are financing a car? |
| i used to lease a car and they forced me to buy comprehensive. is it the same for ... |
|
 Does State Farm homeowners insurace typically cover foundation damage? |
| I have a big water leak in the basement. Water is leaking from between the flooring and the walls. The house is about 75 years old. Do homeowners policies usually cover fondation damage? I can... |
|
 In Easy Terms, what is "Coinsurance"? |
| Dealing with Property Insurance, not ... |
|
 I cannot seem to get insurance due to esophagus? |
What can I do I really want to go to the doctor but don't want to cause a financial disaster. Any suggetions help I'm in AZ. Thanks
Additional Details
Its an eroting esophagus ... |
|
 Where can I get short term car insurance for someone age 17? |
| Ive looked on a few sites but they are all for people over 21 so far. Can anyone help?... |
|
| Anybody know laws behind Subrogation? |
| I recently settled a law suit and then came to find out my health insurance has a lien on me for a portion of the settlement. The company says they are entitled to this because of a Subrogation ... |
|
 Do I need to pay for COBRA-- 5 Days between Jobs? |
| I am leaving one job on a Friday and begin another job on the following Thursday. I was told my Health Insurance ends on my last day of work and then my new employer begins on my first day. I am ... |
|
 I bought a life insurance for myself over 2 years, but after 2 year i have not pay any premium since then? |
| but example 5 years later i die , can the benificiary get pay ,but 2 year provision had passed , can the benificary still get pay?... |
|
|  |
Anonymous | How does insurance exactly work? |
Ok, you have a bill, the bill is more than what you put into insurance, say you just started the first year and only paid $500, and that bill is $1000. Insurance just pays for it all even though you don't have enough in their bank?
Additional Details
I still don't understand. So they pay everything even though they have not gained that amount of premiums from you? |
 |
 
mbrcatz
|
OK, Here's how it works, on a very simplified scale:
The company knows that for every 100 houses, there will be a 10,000 fire insurance claim. They take the expected claims, 10,000, and divide that among the 100 houses. Each house pays $100 for their house insurance. They all SHARE THE LOSSES. That's what insurance is, effectively. |
|
Sharon M
 |
Insurance works by having many people pay premiums and chancing that only a few will actually file claims. For the most part, this actually works. For example, you may have only paid $500 so far but there are thousands, if not millions of other people who have also paid $500 this year. And chances are, you won't have another $500 bill any time soon. Even if you do, the majority of paying insured won't. The premiums should always be more than the payouts. If they aren't, then the insurance company isn't doing it's job. |
|
sarah314
|
You don't "put money in the insurance company's bank." At least, not in the way you're thinking. (If that was the case, you could just set up a savings account and bypass the insurer entirely.)
The insurer determines premiums based on a predicted level of risk. The premiums paid by customers are all pooled together. Some people might pay premiums and never end up having a claim. Others might have a very expensive claim that far exceeds the amount of premiums that they paid in. Its all about shared risk.
Its all a big gamble - the insurer is gambling that the premiums they collect won't exceed the claims filed. You're taking a gamble that you'll get something back for the premiums you pay in. The uninsured are taking a gamble that they won't end up needing coverage. |
|
src50
 |
Your question is unclear. What kind of insurance are you talking about? Life? auto? health? homeowners? |
|
Don Adriano
|
Yeah, that's pretty much the idea. There are three basic reasons why it works:
1. Most people never need to make a claim on their insurance policy. They pay their premiums for years, but they don't get back as much money as they paid in.
2. Insurance companies are very good at figuring out statistics about risk. They won't give you a policy if you are high-risk and it seems like you'll have an accident and need a payout.
3. The insurance company doesn't just sit on your money. They invest it elsewhere and make a profit from the returns on that investment. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
5 | 7 minutes(s) ago
| | | |
5 | 28 minutes(s) ago
| | | |
5 | 47 minutes(s) ago
| | | |
5 | 49 minutes(s) ago
| | | |
4 | 1 hour(s) ago
| | | |
5 | 5 hour(s) ago
| | | |
5 | 8 hour(s) ago
| | | |
3 | 1 day(s) ago
| | | |
5 | 6 day(s) ago
| | | |
5 | 1 week(s) ago
| |
|
Homepage 
Financial
Forum 
Insurance 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
