Maybe I just don’t understand what they’re doing. BUt it seems to me if I take out a 10 year policy that costs $100 per month, I’m betting that I’m going to die within that period of time and the company is betting that I won’t or that they won’t have to pay out. If I get to the end of that 10 year term, then I’m just out $12,000. What am I missing?
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> What is the benefit of a seatbelt?
> It seems to me that if I wear a seatbelt I’m betting that I’ll get in a car accident. If I get to the end of my trip safely, I was uncomfortable for no reason.
> What am I missing?
Insurance is always to minimize downside risk. You have to decide whether the cost is worth it, for the case where it turns out to have been unneeded.
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