this post was submitted on 21 Feb 2026
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That's just blatantly false. I'm all for hating companies that gouge people to make money, but insurance isn't inherently a scam. Insurance, when implemented properly, is paying a low regular premium to offset a risk you can't afford should it hit. I've insured my house against burning down, because I can afford to pay a small amount once a month while a fire (while unlikely) would bankrupt me. Most likely, I'll lose money in the long run by paying for that insurance, but that's not the point. The point is that I can afford to lose money over a 30-50 year period, but I cannot afford to lose my house at any single point during the next 30-50 years.
The US health care industry is a scam
It’s a nice ideal. Insurance can in theory help smooth out whatever life throws at you. But in the modern world, their incentives are to not
i'll bet you and all your neighbors 100/mo, your house won't burn down this month. send payments on time or else. Meanwhile, i lend you your money to pay for your mortgage with interest. have some more Kool-Aid.
Why would I take that when I already have a running bet with my insurance company where I only pay ≈ 20 USD / month?
The whole point here is that I can afford 20 USD/month indefinitely. However, having my house burn down at any point would be absolutely detrimental to my personal economy, to the point of bankrupting me and likely preventing me from being able to afford a new house in the foreseeable future. I'm well aware that in purely economic terms I'm taking a losing bet. The point is that the consequences should the bet strike home are so large that I can't afford not to take it.
Of course, you could argue that I would be better off saving that money and being "my own insurance". You would be right, except for the fact that the house burning down is just as likely tomorrow as in 20 years. If I had enough cash to insure myself, I obviously wouldn't need to take this losing bet, but I don't.
big insurers have millions of your neighbors paying 20/month. all i know is, 'the house always wins'. they are swimming in cash. my dad used to sell car insurance. when cards became mandatory, he had an influx of 'card buyers'. pay one month and get a card. stop paying. because they bet the odds of getting fined for no card were a lot better than odds of getting in a wreck. house wins, sells you 'uninsured motorist' coverage. people gamble on many things. insurance is good when you win. they lose when you win so deny, depose ... I don't know the answer. just try to hedge bets and look for ways to break even for all us non-greedy shmoes. i don't like most insurance co.'s greed. have insurance as required and savings also. i'd never pay for extended warranty on something under $10k. that's some easy bets for them.