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Insurance is not a gamble, it is purchasing the right to shift a potential burden or risk to another institution. Gambling is betting that the risk will not materialize. The wager of the gamble is if the risk does materialize, you bear the burden. By agreeing to pay an insurance company a set premium; you shift the gamble to the insurance company. They are now betting on whether or not they will have to bear the burden.
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There are many types of insurance that people should consider:
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Most people don’t think of Health, Homeowner’s and Auto insurance as being in the same category as Life, Disability and Long Term care insurance. They are in the same category. You insure you car so that if you have an accident the insurance company bears the burden of paying the bill verses your family.
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