Insurance is like gambling, don't overdo it
This article&#x27;s core thesis is wonderful and correct, but the article is weakened by only focusing on theory.<p>An actual set of examples is vital to communicate the extent of the profit. For my part I offer that the life insurance offered &quot;on the market&quot; in japan cost 10x the actuary table for my young age. An obvious aspect of such self-selecting insurance is adverse selection.<p>Insurance ironically has many pitfalls. The worst pitfall being fake &quot;financial advisors&quot; who are nothing more than insurance salesmen hoping to convert your savings into premiums and kickbacks. Every country has different restrictions, but here in Japan &quot;financial advisor&quot; is a title almost 100% implying insurance salesman.<p>There is a reason during the PS3 era it was not TVs, or Cameras, or games, or movies which kept Sony going: it was insurance. It turns out insuring the rich &amp; long living + national healthcare is good business.