Is the insurance industry just a really big legalized "Ponzi" scheme?

Is the insurance industry just a really big legalized "Ponzi" scheme?

NoWhether insurance is for a home, a auto, or medical it works on the basis that a certain amount of claims will come from a certain amount of people who enroll. Based on that the premium rates are set for a policy which provides certain benefits.For example in employer medical insurance plans research, over several years, shows 85% of the premium dollar goes to pay medical treatment expenses. Out of the 15% for administrative costs only 3% of the premium dollar goes to profit.Many types of companies make a much higher percent of profit than a insurance company.Source(s):Experience with medical insurance.

mbrcatz

No, you're confusing that with Social Security, which really IS a Ponzi scheme.Go back and research insurance with wikipedia or yahoo finance. They will explain it.

J7

There are many types of insurance, so I think it would definitely help to know at least which type(s) of insurance you are talking about.Auto liability insurance is fine, and driver/owners need it, for example. But eyeglass, dental, and health insurance is currently so flooded with greedy scams in my opinion. Loan insurances are another type, and I never did like them or need them personally.I would certainly say that most of the current insurances that pertain to anything about human health are currently legalized schemes.

John

There are many types of insurance, so I think it would definitely help to know at least which type(s) of insurance you are talking about.Auto liability insurance is fine, and driver/owners need it, for example. But eyeglass, dental, and health insurance is currently so flooded with greedy scams in my opinion. Loan insurances are another type, and I never did like them or need them personally.I would certainly say that most of the current insurances that pertain to anything about human health are currently legalized schemes.

Ask

insurance

Popular Q&A

Do republicans agree that rising health care costs are dangerous to the USA's economy?
The CARE end of the equation is really out of the hands of the government except for regulations concerning health and safety. What's at issue is the INSURANCE end of the equation. The only practical way to deal with this end of the problem is to either have a Universal HEALTH INSURANCE system...

Georgia salvage title law question?
has the vehicle been inspected , licensed and titled now? if not dont buy it. keep in mind these vehicles are difficult to sell, often poorly reconstructed and everyone always says it was only a "fender and a hood" or a hood and a bumper" they do not total cars with a dented fender. Major systems...

Can I switch insurance companies???
Yes, You can switch companies. AIG will pay for the accident as they were providing coverage at the time of the accident.Your new company will not fix the truck or get involved since they were not covering you at the thime.Source(s):I'm an insurance (P&C)underwriter.

What company offers the lowest cost homeowners insurance?
It always depends on the state. Use the link below to see the options for your county.Also go to the market share link below pick: homeowners, premium volume, groups.Choose one of the top companies who has a growing book, they probably have the best price in the state.Any of the top six (other...

How do you find out what auto insurance someone has??
You really can't unless you go through her bill, and that'd be illegal.I agree that if she does indeed drive with revoked license, she needs to be taken off the street. However, cops don't just stop anybody for the heck of it. They need "reasonable suspicion" of a violation to initiate a vehicle...