Is insurance the biggest scam of the century?

Everyone s heard of insurance fraud.Its when the insuring company is the good guy and when the policy holders are the bad guys.Cases of fraud are common in medical ,auto and property insurance,but what about the other way around.Has anyone ever stopped to think that, Insurance could in fact be the largest racket in the history of global finance.

Thousands of agents all over are employed to sell policies to gullible customers.On the face of it,the offer seems real and worthwhile.When you buy your new car,you get insurance with it,about $1500 coverage as an example.You continue paying the annual premium of a few hundred bucks every year.Your car is scratchless,thankfully its in good shape all these years after you bought it.If someone bangs your car on a busy street 5 years after you bought it, you can claim coverage.You get reimbursed for the damages which was say, $500.If your’e paying a premium of $100 every year and after 5 years you get the coverage,that is already $500 of premium spent.This seems senseless because if you didnt take insurance and just invested that $500 somewhere else,even at a meager APR of 5% compounded, that would be worth over $650 today,and if you spent $500 to get your car fixed,you’d still be on top with $150.

This is only  a simple example,but medical premiums can be much more costlier,and that would be paid for the rest of your life,god forbid until you actually land up in hospital and avail of it.The savings of medical insurance over a 25 year period can be staggering!

The only thing that an cover can give you is some sense of security,its that feeling in your mind and you say to yourself “ok, im covered”, and that will give you good sleep at night,whereas not having cover can make you feel insecure and you would always think of times, if you need to admit yourself in the hospital, the medical bills would kill you.but also remember that, the larger the coverage,the higher the premium too.Keep that in mind and do the numbers, and if you want to get creative,make a bank account,and every year deposit a sum of money equal to your premium that you would have paid into that account.Use this money as your personal coverage.Watch it appreciate,and liquidate it whenever you want,you cannot get back all those premiums you paid all those years ever,and if you decide to cancel your policy after a few years,you wont get a cent back.Food for thought- is insurance the biggest scam or what?

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