Why couldn’t somebody just put money in a savings account monthly instead of paying insurance monthly?
In: Economics
You can do that and maybe later in life it will work, but what happens if after 3 years you have an event that requires $200k? Then you got unlucky and now you are digging into your friends and family life savings. If you and your extended family all did this over generations, then it would work fine. An insurance company is basically this process but including tens of thousands of people.
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