therefore since you're willing to bankroll the first 5k, you will likely not receive insurance help in paying your bills
No, that's exactly the opposite of insurance.
The whole idea of insurance is to be covered for large and unusual expenses, like your house getting wrecked by fire or a meteor or an earthquake. A home insurance policy does not cover you for painting the house or rotting porch steps. Those smaller expenses you pay for yourself. With insurance, you put a lot of people in a pool, each making a smallish payment, so that the few in the pool who have a disaster can draw on it. That's the meaning of insurance. When you insure your home, you hope never to get anything back from the insurance company because that means that your house will have been struck by a tragedy.
From Wiki: "Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss...The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate ( indemnify) the insured in the case of a financial (personal) loss. "
You clearly don't understand the concept of insurance. Just because the homeowner cannot afford to keep up the painting on his house does not mean he's self insured. He is still insured, just financially unable to maintain the house. For cars, insurance covers wrecks, not oil changes and brake replacement. Someone who cannot afford to keep his brakes in good working order is not said to be self insured. And someone with health care insurance, real insurance, hopes not to get a dime back from the insurance company because that would mean that he was very ill and no one wants that.
The insurance business is a form of gambling and the insurance companies have the data and the expertise to make sure the odds are in their favor and the odds say the customer will never collect anything from them....ie thank you for you donation.
When the customer never collects anything, that's a good thing. That means his premiums have gone to pay for rebuilding the house or replacing the car of someone else in his pool. A normal, healthy reaction to that is relief, not outrage at the insurance company. |
