Many really do not understand why insurance advice is needed in the first place. The reality is most do not understand what insurance is.
I had an interesting discussion with my daughter that put people’s ignorance on insurance into perspective. My daughter had an experience in going to the emergency room. She forgot to purchase the insurance at school and was under the false belief that we had no insurance at all. At the end of the appointment she told the accounting department at the hospital she had no insurance. They charged her two thousand four hundred dollars for the service.
When she got home she called me and we started discussing insurance. I informed her that we had insurance but it was catastrophic which meant I am responsible for the first ten thousand dollars of charges for that year. She thought it was robbery. She said I paid several hundred thousand in insurance over the years and that I had to pay the first ten thousand dollars was wrong.
I had to explain to her that insurance is a bet. You bet that you will need them to pay you. They bet that they will never have to pay you. The equilibrium is that neither side loses.
