‹ Catastrophe Insurance
Insurance. A bet you hope to lose.
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Insurance
A bet you hope to lose
Many people pay a small amount so that the few who need it get a lot.
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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
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Because you read Insurance.
Money SenseGL-00013
Taxation
The membership fee for everything shared
A share of what people earn and spend, collected to pay for shared things.
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When It BreaksGL-00147
Catastrophe Insurance
Pricing a disaster before it happens
The business of putting a number on rare, enormous losses.
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Money SenseGL-00009
EMI
The cost of "easy"
A large price broken into equal monthly payments, with interest added.
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