Insurance And Ethics
by: Joseph Kenny
Insurance contracts are often seen as a form of gambling. That is because they appear as a type of wager that takes place over the lifetime of the policy. Basically the insurance company is willing to bet that you and your property will not suffer the loss insured against. In exchange for making this bet, and taking on the risk, the receive your premium. If they win the bet, they keep the premium, if they lose, they make the payout. In this sense, they are often compared to a type of long term financial casino.
The difference between your premium amount, and the amount the insurance company will have to pay out if the loss occurs, is simply the odds the insurance company is getting for taking on the bet. It?s just like going to the horse races and betting on a horse that pays out 10 to 1.
This view of insurance has led to a number of people and religious communities disapproving of insurance because of its similarities to gambling. Among those groups that avoid insurance are the Amish and Muslim communities. What these people do instead is create a system of what is known as social insurance. What this means is that if there is a disaster and someone suffers a heavy loss, then the whole community will step forward and help them to deal with their loss and rebuild. While this system is very simple, it has the potential to be just as effective a safety net as insurance. However, it requires that the community actually does step forward and help those who suffer from disasters. This means that it is more successful in small closed and closely knit communities than in large modern societies.
Social insurance systems therefore are not always effective. Often the community that is supposed to adopt it is not suitable. Also, in very large disasters the system can break down as a small community will not be able to rebuild itself completely without outside assistance. This is why larger modern insurance systems can be more robust. However, in extremely large disasters, modern insurance systems can also run into difficulties. This is witnessed by the fact that it is impossible to insure against certain risks such as floods and earthquakes. This is because the damage would be simply on too large a scale for the insurance companies to cope with.
There are other ways in which insurance doesn?t follow the gambling model. For instance insurance companies seek to reduce the risk of the loss occurring constantly, for instance by requiring the installation of fire alarms, or by reducing the loss if the insured against event does occur, for example by providing rehabilitation to accident victims. Therefore insurance is like a gamble in the reward and risk elements, but other elements are different.
About The Author
Joseph Kenny is the webmaster of the insurance site http://www.insure121.com/ where you will find information, news and links to the leading providers of car insurance in the UK
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Long Term Care Insurance From A Solid Provider
Long Term Care Insurance From A Solid Provider
by: Ivon T. Hughes
Blue Cross Blue Shield of Michigan will start a new company that will offer long term care insurance policies beginning in July 2006 and concentrate on providing long-term care services to individuals.
The individual policies would include coverage for assisted living and nursing care but there would be no group coverage products available.
CHRONIC ILLNESSES CAN BE COVERED BY LONG TERM CARE INSURANCE
Unlike traditional medical insurance coverage, long term care coverage helps patients address chronic illnesses and disabilities that employer policies and Medicare don't cover. They usually include meals and help with daily activities such as bathing and getting dressed. This will help protect them as the average cost of nursing home care is more than $50,000 a year, according to the AARP.
U.S. Census data suggest that the population of people 65 and older will...
Long Term Care Insurance From A Solid Provider
Auto insurance > Long Term Care Insurance From A Solid Provider
Ins and Outs and others of health insurance
Ins and Outs and others of health insurance
by: Ryan Fyfe
One of the great benefits of working at a full time job, is that often times your employer will provide health insurance. This insurance doesn't come free, most likely a portion of your salary is deducted to cover it's costs, however becuase you are under a company you can acheive greater discounts through group rates.
Health insurance is simply a type of insurance that will cover the insured person or part when that person or party become sick or injured,etc. The insurer is not always a private organization it can often times be a government agency. There are great differences between health care insurance around the world. For example in Canada health care is part of our social system and is public, where as in the United States health care is for the most part private.
There are several pros and cons to each system, and depending on the area in which you reside you might not...
Ins and Outs and others of health insurance
Auto insurance > Ins and Outs and others of health insurance
Auto Accidents - Protect Yourself
Auto Accidents - Protect Yourself
by: J Zuniga
Auto accidents can be very stressful if you don't know what to do.
The following are some tips in case you are involved in an auto accident.
First of all, make sure everyone is ok.
If anyone isn't ok, then immediately call 911.
By OK, I mean, needing medical attention.
For example a broken bone, concussion, or serious cut.
If you aren't hurt, then you want to make sure you do the right thing and protect yourself.
There are alot of people out there that will frivolously sue, so you want to make sure and handle yourself properly.
Don't anger or upset the person you are involved in a wreck with.
You don't want to give them any more motivation to sue you.
The next thing you want to do is identify the driver.
Make sure that they don't try to switch drivers.
In some cases involving drinking, people...
Auto insurance > Auto Accidents - Protect Yourself