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Insurance — A bet you hope to lose
Front
Money Sense0010
Insurance
A bet you hope to lose
Many people pay a small amount so that the few who need it get a lot.
I · You11 / 53
Back
0010 · The Primer11 / 53
A thousand people each put in 1,000 rupees. If ten of them face a crisis, each gets 1,00,000 rupees. The 990 who stayed safe "lost" their money. But they bought a year without that risk. The product is not money. The product is certainty.
- India has about 4% insurance coverage, compared to a world average of about 7%.
- Ask at home: "Do we have health insurance?" The answer matters more than you expect.
SourceIRDAI annual reports
Swiss Re Sigma, insurance penetration data
Swiss Re Sigma, insurance penetration data
Keep exploring
Because you read Insurance.
Money Sense0013
Taxation
The membership fee for everything shared
A share of what people earn and spend, collected to pay for shared things.
I · You14 / 53
When It Breaks0147
Catastrophe Insurance
Pricing a disaster before it happens
The business of putting a number on rare, enormous losses.
III · The Machinery44 / 53
Money Sense0009
EMI
The cost of "easy"
A large price broken into equal monthly payments, with interest added.
I · You10 / 53