The Case Against Insurance

Insurance Fraud Resources

Tired of paying insurance premiums?


Text from video:
“The general concept of insurance is ridiculous.  Far less than 1% of those insured ever receive any benefit.  Life insurance is probably the largest ripoff.
We’ve been brainwashed into paying insurance to people/organizations that do their best to ensure payments are rarely made.
We gladly give “them” money so that we can feel secure in case of unexpected circumstances.
However, the sad truth is that when the unexpected circumstances happen, those who receive the insurance payments will do everything in their power to prevent the insured from receiving payment.
Why do we continue to pay insurance when we know that the probability of receiving any benefit is almost zero?
I can study and come to a clear understanding of complex algorithms.
However, no matter how much I study this idea of paying large sums of money to people/organizations that have no desire to provide any benefit in return,
the more confused I become.”
Please leave feedback and/or comments below.

Thanks.
Insurance Fraud Resources

44 thoughts on “The Case Against Insurance

  1. A scam? Probably. I am not familiar in insurance industry in all honesty but it’s no surprised about the existence of such people.

    Such people are infamously capitalist, that they’re willing to do anything just to gain money, taking illegal ideas into consideration.

    Further, it’s even worse when taking into a court case and yet, the verdict turns out to be the opposite. It happens.

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    1. The John Grisham book, “The Rainmaker”, although fiction, is an interesting story about an insurance case taken to court. Very good book. The film adaptation of the book is quite good also.

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  2. So I almost had a heart attack when I read the title of this blog post because I am a financial adviser and believe heavily in protecting your financial assets. You do bring up an excellent point about insurance companies not paying out when you file a claim though. There are a lot of rules and loopholes that large companies find to potentially drag things out in an attempt to avoid paying. My recommendation is to research the insurance company and read reviews on their business practices before choosing to purchase a policy. If it helps, I use TransAmerica for my personal needs because they have a life policy that will pay out partially in the event of terminal illness or severe accidents to help pay for medical bills.

    Jess

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  3. Hello here. Your mentioned topic is important and interesting. I guess that nobody can give right answer regarding insurance payments. How you can predict what will be with health next year or what kind of calculation we can use when we think about car insurance.
    I guess it is a tricky topic. According CNN, workers with solo coverage now pay more for health insurance. A difference is 8.1% from last year. Numbers are rising. It is not pleasant news for our wallet. Question is: what we can do?
    We can use prevention measures such as protect our health when eating healthy, exercising. Anyway, things happen.
    Maybe it is better to have bigger amount for rainy days and not to pay insurance?
    What solution do you offer?

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    1. I’m certainly not qualified to provide financial advice. Putting the cost of insurance premiums into savings might help. Some circumstances may not have a solution. The insurance concept and system are inherently flawed, and nothing short of a complete overhaul would suffice. How to effect such an overhaul would require much more detailed analysis.

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  4. Hello,

    Well insurance is a sad reality of life. I think insurance companies do a good job of playing on peoples emotions to help make tragedies easier. You mentioned life insurance, but I think the biggest buyer of life insurance are parents wanting to make sure their kids are taken care of and spouses wanting their partners taken care of.

    I am a little lost on your website. The top says all things electricity, but I am not sure how presidential candidates or insurance fit in there.

    Is there a reason you did a YouTube video instead of a traditional blog?

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    1. I have lots of blogs. I’m just trying to gauge the sentiment of insurance policy holders. Thanks for the feedback.

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  5. Things that make ya go, “hmmmm?” couldn’t agree more with your thoughts on insurance companies. Love the use of the video here, except it moves a little slow and I found my attention drifting at times, between frames. So, what alternatives are there to paying for useless insurance? I’ve heard some people are opening separate savings accounts to use for emergency situations rather than pay insurance premiums.

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    1. I’m not sure what the best alternatives are. I think I’ll include a pure text version of what is said in the video just below the video. Thanks for your feedback.

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  6. I like the videos and the site is clean looking and easy to read, Although there is not much to read except comments.
    I especially like the review video on insurance. insurance what a rip off. I have Travelers and had a couple of claims which they paid. Problem was by the time 3 years passed I paid enough in higher premiums I paid them back double what they paid me.

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  7. That was a very interesting video. I know that there are insurance providers out there that will do exactly what was mentioned in the video. They will prevent their subscribers from receiving the funds that they are entitled to. However, the problem with this is that these “Bad seeds” in the insurance industry give the good, reputable insurance companies a bad name.

    Do you, by chance, have some statistics concerning the ratio of individuals not receiving money for legitimate claims versus the amount of individuals receiving money for legitimate claims? Is there a place to go where the insurance companies are rated according to their practices and claim resolved statistics?

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    1. I do have some statistics. However, to produce some meaningful data, I would need to pull from a larger sample set. Do a google search for “insurance rating system”. Even with the rating systems, it’s very hard to know what information is reputable. I just don’t like the idea of insurance. Paying for something that has a probability of happening just doesn’t make sense to me. I think goods and services should be paid for as needed.

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  8. Your video makes a great point, we do pay life insurance just so that we could feel safe and I agree it is a rip off. That statistic you gave stating less than 1% of people that pay life insurance actually benefit just makes me realize how much of a waste it actually is, thank you. Any other suggestions?

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  9. Nice job buddy. You keep it simple, well organized with quality content. Your website site inspire me and I like that you added the youtube video on insurance fraud. My only concern is on your ‘contact us’ page. I had to click on the other ‘contact us’ in blue, to be able to view the form. Do you think it would be better if you put the form on the main ‘contact us’ page

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  10. This is a very timely article, I just had a case with a fake Prudential agent named Grace Ng here in Malaysia and would like to share my experiences.

    She came to me with a team under false pretense that they are doing a survey but actually what they are trying to do is that they are trying to sell their insurance.

    After i realized that I lost my money the next day, I lodged a report to the main Prudential HQ and told them that their agent is taking my money without my consent and I told them I don’t need insurance since I already have one.

    Prudential was hesitant to give me back my money but after I told them that I would lodge a police report and do a public announcement on media, they finally refunded my money.

    There are so many terrible people such as these fake agents, they are the worst. Everyone needs insurance but there’s a fine line between ethical and non ethical practice.

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  11. Hi Doug, whoa, that is a very strong sentiment you have there against insurance. I can understand how you feel there. Maybe you have a bad experience before, but so far from my experience, most of my insurances were paid accordingly I guess, as long as I/we provide all the necessary documents/proof I supposed. I mean, if I didn’t have that insurance policy, I would have not been able to pay the cost of damage. Another example, I wished my dad had an insurance because just 2 months ago, among our siblings, we have to share the burden to pay for the huge medical bills for my dad’s operation sigh…. Anyway, maybe you can suggest other alternatives to insurance? Saving money will take years for sure…

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  12. Hi Electrobot,
    Thought I saw someone call you Doug, though I’m just not sure. I was hoping by the end of the video that you would identify those things (companies) that should clean up their act. I’m sure a lot of people have experienced what you are talking about, but there are probably just as many who have experienced good things about insurance companies as well. Perhaps you could take what is working and show the nare do wells what they can do to change.
    You might write a blog or two on some of the suggestions that come to you in the comments area of your post.

    Also, I’m having a hard time understanding what the theme of your website is about? It would be great if you had a page in the menu that spoke to your Mission Statement. That way your site wouldn’t feel so random. Really good content, compelling. I will visit often, but just want something to tie it altogether.
    Thanks for your site.
    All the best.
    Beth

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    1. Hi Beth. Thanks very much for your suggestions. I’m hoping the insurance fraud resources link I posted will shed some light on this issue. I always appreciate honest and detailed feedback. Thanks again. :)

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  13. Very interesting topic and I hadn’t really considered just how little insurance payouts were actually made to people. I have heard horror stories from friends about all the hoops that they have had to jump through to collect payments and many of the have not received anything.

    I have elderly cats and have always regretted not getting pet insurance as they have been fairly expensive recently, but your page has got me thinking about whether or not it would have made much of a difference.

    Which types of insurance do you think are the biggest scams?

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    1. Hi GaymerJock. I’m not sure which types of insurance plans are better or worse than others. Life insurance is certainly on top of my list as something that benefits the company and has little or zero effect upon the policy holder. Check out the link I included in the post if you want to learn more about insurance fraud. Thanks for watching the video.

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  14. I have often wondered if we were being dooped on this insurance thing. It makes you understand that you should look into this thing a little further so you’ll know whether to go through with it or not. Do you have any suggestions on how to go about this? But wealthy affiliate is nothing like that. I always love what’s being said about wealthy affiliate. This is truly an amazing place to be. When I first joined here, I got many awesome greetings from certain ones in the community, the first one being Kyle. And as I went forward, it only got better and I kept thinking, “what’s the catch, what else do I have to pay for?” But there was no catch, you just do want you came to do, and like you’ve said, everybody helps everybody, I love it. Wonderful post!

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    1. Thanks Retha. I don’t have any specific suggestions about insurance as I have gradually withdrawn from the insurance industry. I did post a link about insurance fraud resources in the post. WA is truly a remarkable community.

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  15. Hello, Doug.

    I was interested in learning a little more about you than what you have provided. LOL! That’s fine, though. I’m a pretty private person, myself.

    I enjoy your informative website, even though I don’t agree completely with your views on insurance. My last ex-wife got breast cancer…stage 2…and had to have a lump removed, plus chemo and radiation therapy. We were both fortunate enough to have good insurance through our employer, so we didn’t pay any out of pocket. I shudder to think how much we would have been responsible for otherwise.

    Auto insurance is also a necessary “evil” I’m thinking because I had an incident once where someone backed into my brand new car, provided me with false insurance information (he didn’t have any) and I had a Hell of a time getting my brand new car fixed.

    At any rate…a fine job on your website content and design. May you have an awesome and prosperous New Year!

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    1. Hi Dennis. You’ve certainly had different experiences with insurance than me. I’m glad to hear that things worked out in your favor with the cancer issue. I suppose there is good and bad to all elements of life. May your New Year be prosperous also! :)

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  16. Hi, the video makes me question the ability of insurance companies that would be beneficial for me. I would like to know what companies are going to help us through the tough times, and what companies are just there to make a buck on us. If you could give a review of insurance companies, it would help a lot.
    Thanks for your post, very appreciated,
    Luc

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    1. Hi Luc. As I’ve gradually withdrawn from the insurance industry, I’ve found a new sense of freedom. I don’t have information on specific companies, just the industry as a whole. I probably won’t be writing any reviews of insurance companies. The best I could suggest is the insurance fraud link that I’ve included with this post. All the best to you. :)

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  17. Nice video, I enjoyed watching it and I find it much easier than reading the same text as a written post. Music is amazing.

    I agree with you hundred percent. In the end, insurance policies are kind of certain long or middle term investment; so do you have ideas for insurance alternatives?

    Do you think I can make a certain investment plan with a bank instead of life insurance?

    Thank you

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    1. I am not qualified to provide specific financial advice. I just don’t like the idea of insurance. I think we should pay for things as we need them, not pay for something that might occur.

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  18. Hi Electrobot,
    I usually feel refreshed by some of your blog posts amidst life’s stresses as you have unique ways of presenting them.
    About insurance, taking for instance an education policy for a young kid, say 2 years to be compensated after 12 years sometimes for me doesn’t add up. A rather better idea would be to buy a plot of a similar compensation value or thereabouts and make the beneficiary the same kid. In 12 years, that property would be worth at the very very least double its original price. Insurance wouldn’t help you achieve that.

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  19. I can understand what you trying to say in your video. We all wish we could go without any insurance but we mainly take out insurance for our own security.
    Maybe you may have had a bad experience with insurance companies. I believe that when taking out an insurance policy of any type we really need to ensure only the aspects necessary to be covered to reduce premium. Example if you have house which is situated in a place where flooding is not possible then you don’t need a flood cover.
    Only you can always be the best judge to take out the necessary insurance policy.

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    1. Hi Vijay. Thanks for the comment. I just don’t like the idea of having to insure myself against something that may never happen. It would be much better to be able to “pay as I go”. In other words, if an accident does happen, I just pay for it the same way I would pay for other goods and services. Unfortunately, the insurance industry has made this impossible. I really don’t mind paying into a system that provides protection and benefits in return, however, this has not been my experience with any aspect of the modern insurance industry. Thanks again for sharing your thoughts.

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  20. I feel the same about insurance with some exceptions Here is one of them.

    One of my friend’s married a man who was born with a disease that caused him to be a little person. They always knew eventually he would get worse and so they prepared for it and purchased insurance when it was necessary.

    He died about a month ago and the insurance paid out. He made sure she was taken care of.

    In their case they kind of knew when he would die because his condition would only get progressively worse. But this isn’t the case with most of us.

    I can see purchasing life insurance if you have a disease that will take a well documented course or decline. But when you’re healthy why purchase any at all?

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    1. Thanks for pointing out the positive side. Exceptions are rare, however, as you’ve clearly shown, exceptions do exist. Sorry to hear about the loss of your friend. I’m glad that his wife has the necessities of life.

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  21. Hi, interesting video. I have watched an eyeopening tv documentary about this very subject, life insurance companies not paying up and basically finding every reason not too. It was actually very sad for the families. Still I always take out travel, car insurance etc and can’t imagine not doing it – I think it’s the security and peace of mind. At least hoping they’ll do the right thing incase of an unlikely event.

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    1. The insurance companies always win. One could pay life insurance their entire life and never gain any benefit from all the premiums that were paid over the years. However, no one wants to take the risk of not having insurance. Too bad we can’t just pay for things as we need them. “The Rainmaker” by John Grisham is a novel about insurance fraud. The book is interesting and not too far from reality.

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  22. Hi there,

    Nice video! I too have had frustrating moments with insurances (pet insurances in particular) that have costed me over the years.

    I can understand where you are coming from, but at the same time I am of the belief that it is still much more riskier to NOT have the insurance instead of have insurance.

    I’m assuming that you do not have insurance and opt not to be part of any plan due to the insurance companies difficult tendencies?

    I would love to hear more of your thoughts on this matter,

    Eric

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    1. Thanks for the comments, Eric. It is difficult to find the right balance. I’ll definitely be writing more on this topic going forward.

      Like

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