Hurricane NeddyWhy don’t I believe in insurance? Because of Ned Flanders.

Maude: Neddy doesn’t believe in insurance. He considers it a form of gambling.

“Hurricane Neddy” episode

Seriously I do kind of agree with Ned Flanders. Insurance is a gamble and most of the time the house, in this case the insurance companies, win. I think the only time insurance is worth it is if not having it would affect your lifestyle. For example if I didn’t have medical insurance I may not seek medical treatment as often as I should. I think if I did not have auto insurance I may choose to drive less. However I don’t think having or not having house or life insurance would affect my lifestyle. Unfortunately in some states it’s law to have these kinds of insurance.

5 Responses to “Why I don’t believe in insurance”

mark.r wrote a comment on May 17, 2008

yes, insurance has negative expectation (expected value). it’s the price that we pay in order to reduce variance. do you object to insurance because it has negative expectation, or because having it reflects a lack of trust in God?

if it’s the former, then i agree with you in some cases. for example, extended warranties are very -EV, and almost everyone is better off not buying them and paying for repairs later on if necessary (since the expenses are minor compared to total net worth). life insurance has more merit imo because that sort of catastrophe is worth ameliorating for the benefit of those who depend on us. i believe in planning for negative “black swans.”

if it’s the latter, i can understand that view also. i don’t share it, but i can’t make a compelling case against it. although with sufficient faith in God, wouldn’t we be unafraid to drive, even without insurance?

seonghuhn wrote a comment on May 19, 2008

my quick answer is i object to insurance because of both the negative expectation and a lack of trust in God.

i agree with you that life insurance and other insurances exist to deal with catastrophe.

on the other hand though i sometimes feel like when we buy insurance policies we are not leaving any room for showing faith in God, believing in his promise not to worry about tomorrow.

i kind of take a middle road. for example i don’t have life insurance because i know if tragedy was to strike we have enough family and assets for my family to continue. this is not always the case for every family. on the other hand i know it will be difficult and not nearly as comfortable as if i had a large life insurance policy.

one thing that is kind of nice is that every year i live longer i think to myself i just saved $1000 on life insurance. 🙂

essny wrote a comment on May 20, 2008

Does Ji Seon thinks similarly about healthy insurance? I honestly think that women have different needs and to not have health insurance (assuming you can’t pay out of pocket for each visit to the doctor’s) isn’t a gamble worth taking. I equivocate health insurance with life insurance. If you’re in the hospital or require long-term health care and you don’t have insurance, how is that cost any less burdensome to your family who will have to pay for it out of their pockets?

What I really need/want right now is dental insurance. I need my wisdom teeth extracted…

seonghuhn wrote a comment on May 21, 2008

Good points Esther.

fkimplicity » Earthquake Insurance sent a pingback on June 7, 2008

[…] provides me home insurance must send me an offer for earthquake insurance.  Now as you might know, I don’t believe in insurance.  However it is unsettling, being an east coast person, to think of an earthquake wiping out your […]

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