A lot of people still don’t
understand how insurance works for
each of them. If you value your money so
much that wouldn’t just throw some away for nothing, it is certainly very
important that you understand the whole concept of insurance. Insurance is like an agreement but is more
frequently considered as a type of bet because it seems to be a form of stake
involved in the policy. Primarily, the
insurance provider will make a bet, providing that you will not suffer any
financial loss if misfortunes occur like car accidents, house damage due to
fire or typhoon and death of a loved one.
Together with this bet, the insurance provider will require you to pay a
certain premium for a given frequency and that if you won’t get the claim,
they’ll have the premium and if you’ll get the claim, they’ll make the
outlay. In general, insurance is like a
long-term risk-transfer system wherein you also have to make long-term bets.
On the other side of facts, there
are several people and other religious groups who express their disapproval on insurance
due to its association with betting.
Actually, there is a wide variety of ways in which insurance is not made
to follow the line of gambling system.
One very good example to this is when insurance companies reduce the
risk of damage or loss by installing fire alarms, thief alarm or others. Another is when companies provide covered
medical attention for the victims and other parties involved as well as
compensation for damages to properties involved, regardless of who’s at fault. In general, insurance is a reward-punishment
system in some extent and a form of bet in a different sense.