It being a dull day, I decide to respond to what jim rozen
foisted 21 Aug 2004 11:46:33 -0700 on
rec.crafts.metalworking , viz:

So the deal is, the insurance companies invest the money and
then give it back when you make a claim. Sounds to me like
a person could do exactly the same thing - invest their money
and then get the ROI on it, and use the principle for any
large hospital bills.

Can you put that much money up?

The idea behind "insurance" is that the risk is spread out. If ten of
us kick in a hundred bucks to cover medical expenses, then collectively
"we" have a thousand dollars to pay the medical bill. But if two or more
of us claim that thousand dollars, the fund is going to be in deep
kim-chee.

So, can you write a check for 17,000 dollars to cover a "simple"
illness? If you can then you can self insure. But otherwise ... . (And
one problem with self-insuring is the age old one of "the money is just
sitting there ...")

I guess what I'm saying is, if I want health insurance, I
go to an insurance company. If I want to invest, I go to
a broker.

A good plan. Just remember, as the insurance company will have
"excess" cash on hand, sometimes on a day to day basis, sometimes on year
to year basis. Do you want them to just put it in the desk drawer? Little
chance of loss, but no chance of it growing.

--
pyotr filipivich
What is normal?
"Two sigmas either side of mu.
You bring the cow." drieux.