So let's get to it. INSURANCE is what make society what it is. There is the FDIC the almighty backers of the banks and our financial systems. There is the health insurance companies....who you pay premiums to just in case you get sick.There is the life insurance companies, who you pay premiums to monthly (if you can afford it) in case you die so you can leave your family with a little something (if the company decides to pay....which often they don't). There are the accidental dismemberment insurance, car insurance, short term disability insurance, long term insurance, unemployment insurance sometimes..You get the picture.
But what if i was to tell you that student loan interest, taxes, state and local fees, and corporation penalty fees and interest were also insurance....insurance to the federal government against the people it serves, and insurance to the corporation against its own consumers.
In short, INSURANCE is only a tool in which an entity can make money on a low risk possibility. Just like a car insurance or health insurance company would charge you a premium every month for the idea of protection today.....the federal government charges student interest on loans that they know the student likely won't be able to pay back in full ever....its a way for a company or our own government to thrust us into financial ruin and a lifetime of indentured servitude for the "security" of being able to obtain an education, or to have the "security" of being able to have medical care when we may (or in their hope...may not need it).
Lets face it, if the average person was to really purchase all the insurance they would need to survive comfortably in the face of a true disaster, that person would not be able to make ends meet. The fact of the matter is, insurance is an expensive back up plan...its a gamble...a gamble most companies win...as they bank on you to spend more money in premiums then you would normally ever spend to fix the original problem anyway.
So now that we know what insurance is....how does this help us average person.
WELL....you need to now ask 2 questions. Who is really insuring you, and who are you insuring.
Well, right now you are insuring the federal government. You are paying taxes, or student loans...or both. You are also probably insuring credit card companies if you have debt with them. Pay day loan or title loan companies you may also be insuring (check out those interest rates). Believe it or not, you are also insuring the light and gas companies...those late fees and service fees aren't cheap!
You are getting the security of a small sum of money, or a small home, small car.....while in debt up to your ears. While securing that the companies and government entities involved are getting your guaranteed hefty payments every month.
Wouldn't it be easier just to lend out, and pay back what you actually would owe? Probably....but what is the profit in that? What is the insurance in that. Where is the consumer debt in that. Where is the indentured servitude in that?
And as to who is insuring you...well...take a look around. Its " CORONAVIRUS"....how secure are you feeling right now?
.....AND this is the end of this post, join me for my next post where we will be exploring the beautiful world of bankruptcy. The anti-thesis of "insurance"!