The Insurance Calculation
The calculation for insurance runs like this: The company is profitable when the cost of premiums that we pay is greater than the future claim that we may ask for (having a certain probability).
Cost of Premium > (Cost of claim) x (Probability of claim)
26
263 reads
CURATED FROM
IDEAS CURATED BY
The idea is part of this collection:
Learn more about moneyandinvestments with this collection
How to challenge assumptions
How to generate new ideas
How to break out of traditional thinking patterns
Related collections
Similar ideas to The Insurance Calculation
Insurance Is A Bet
Generally, insurance is understood as a bet. We pay a premium and are secure about some uncertain future costs which may be substantial for us.
If we check the calculations of our monthly insurance payments, it would seem we are losing money, and this bet is only profitable for the ins...
Reasons We Buy Insurance
- We believe that the probability of us experiencing the event that we are insured against is high.
- The claim that we may get in event of something happening is substantial with the cost of premium being on the lower side (basically a bargain).
- To offset sub...
Reduce Health Insurance Bills
Ask at work about your available options that might reduce your insurance costs, and look into family options if you have one.
To lower monthly premiums, consider a high deductible health insurance plan. Just be sure to weigh the expected savings against the additional ...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates