The first 1,000 people to sign up to Skillshare will get their first 2 months for free: https://skl.sh/infographics9
How do insurance companies actually work and how do they make money?
SUBSCRIBE TO US -► http://bit.ly/TheInfographicsShow
WEBSITE (SUGGEST A TOPIC):
CHAT WITH ME:
Sources for this episode:
Some Images used under license from Shutterstock.com
How do they make money well....I’ve been driving for 20 years I’ve never had a accident I’ve just had 2 glass claims....average of 1,100$ a year times 20 that’s over $22,000 for about $600 worth of glass...that’s just me never mind all the other millions of customers...and then when you DO need a claim you have to pay almost half your premium for a deduction....NICE SCAM
You try to explain but you dont know how to explain, much of the info are not relevant or not directly explaining the stuff. You complicated a bit, but you explain it on quite hard to understand way. You also shuld include the insurance company must have % the cilent to work with profit. 10 people insure phone, 6 lost they phone and its cover by insurance they lose money.
isn't obviously how they make money? the lobby Congress to make it mandatory to have it or they convince stupid people to think it's communist to have universal. collect there money, then when it comes time to pay out ether refuse under some fine print bull shit or do pay out 1/8th the value unless you pay for insurance to cover your shit insurance such as GAP or what ever ever crap allstate is peddling at extortion rate.
take auto insurance I'm 32 I have been driving since I was 16, zero accidents I pay $2200 a year I have pissed away $34,000 minimum but if that day ever comes. my rates will go up, I still pay deductible and I'm still left without a car.
as far as medical goes. they make you pay out of pocket to a set number say $10,000. then cap you at $100,000. my 78yr old grandmother broker her hip in January it cost $117,000 to replace. because it's communist to have universal health care in America she was hit with $27,000 bill with 11 months left in the year to hopefully not need any other medical care. BTW she can't pay that bill, but you really don't need credit when your that old so who cares if you default.
homeowners insurance. I live in florida, God help you if your house falls into a sink hole, forest fire, or better yet hurricane, 3-5 years minimum for your payout.
if you think I'm just prejudices, my rich uncle is vice president of a health insurance company. I stayed in his multi million dollar house in a spare room that was bigger than my whole apartment. I thought about asking to stay at his vacation house in Malibu over looking the ocean. Yeah I have hate for insurance companies.
I earned my life health and accident insurance a few years ago but left the insurance business. Watching this video I was glad I was able to remember how all of this worked before pressing play. I was beginning to think I lost that information.
Because they deny claims every way they can while you've been paying your premiums for 20 years and only 1 thing happens where they would be out money. Then they get their money back when they do have to payout from government funding and breaks.
While you explained the basics of insurance and a little more, you really didn't cover the risk assessment very well. Insurance is more than just "spreading the risk". Insurance companies often group people into homogeneous groups and known statistical information about the risks (actuarial information) those groups have in order to calculate the premiums. While any particular insurance buyer doesn't know if he will need the insurance, and thus, it is a gamble to him, it's no gamble to the insurance company *IF* they've done their risk assessment job properly. They should already have a good idea of how much money they will have to pay out in a given period of time, and thus, know how much money they need to take in to cover that.
Problems arise if unexpected or extreme events occur that were not foreseeable, or if a group is too small to generate consistent actuarial information. Problems can also arise when government regulations interfere with insurance and force insurance companies to insure high risk events without adequate compensation to cover the payouts. Health insurance in the U.S. isn't really "insurance" any more because of various regulations that make providing health insurance more of a gamble for the insurance company. Now, American health insurance is really more of an alternative way to pay for regular and expected health care costs instead of to actually insure individuals and families for less common and unexpected (to the individual) health care costs. This is part of the reason health care in the U.S. is so expensive, because health insurance is not an efficient way to cover health care costs.
Some additional comments: People like to complain about insurance companies, and yes, sometimes insurance companies do crappy, unfair, and even illegal things. But insurance companies are business much like any other business, and if they can't make a profit, then they can't stay in business. Instead of simply picking the cheapest insurance company, consumers should try to pick reputable companies that are well-run, dependable, and do a good job of risk assessment to minimize unexpected events and losses. Companies that pay up when a legitimate claim is made because they already know they can afford to cover it and don't have to worry about going out of business.
A good explanation of insurance companies is given i a John Grisham novel. I am not a Socialist, but take a dim view of ins. cos. & their power. They collect oceans of money, then play the stock market, and gain money even more, and the power that can come with it. What's with these cute & sympathetic illustrations of business turds? And I wondered where the fury of Communist militants came from.
You will know what insurance you have when you go to make a claim. Ooops, preexisting condition - claim denied! Insurance companies get rich off your fear. Research, research, research your insurance company to confirm that they operate in a ethical manner. Good Luck.
So it's a Ponzi scheme with a twist. You don't have to pay back your investors unless something goes wrong for 1 of them. Then you invest it and the returns you keep. Superannuation companies do the same thing.
All insurance is a scam and can never be a legitimate business. All businesses either sell a product or a service in order to make profit. Insurance's product is their profit. In order to make profit, they must restrict the amount of money they distribute. This is why the you see commercials all the time for those Jew lawyers, the Bernsteins, trying to sue them.
So essentially an educated gamble?
They take on liability for people's assets (should they be destroyed/lost under valid circumstance) knowing that most people will not need to claim on this liability, therefore they will profit as long as most people do not claim (hence why they are so strict about the circumstances required for a claim to be valid).
I have come to three conclusions to describe the majority of this comment section.
1. A bunch of kids that don't understand economics, or how insurance works even after watching this video.
2. A bunch of people who think it is a scam because they buy partial policies, and are probably high risk (which is all on you)
3. A bunch of socialists, or individuals who think everything should be handed out to them because of their failures to be financially aware. That way they never have to be accountable for their failures. Which a good portion of the comments have something to do about scams, refusing claims, going to court, and how insurance companies should be non-profit
In puerto rico many of insurance was deny a lot of cleints or give little money when hurricane maria destroy PR, and worst some of then refuse to paid the client because depend how was destroy your stuff and claim was "Act of God"
The Infographics Show To me it feels like there have been a lot of negative videos (head getting cut off, falling in acid, unethical business schemes) I’m not saying ALL of your videos have been negative, but there have been enough for me to notice but I mean whatever I guess I won’t comment my feelings anymore 🤷♀️
Living in florida, we are prone to water damage. My insurance doesnt cover water damage and they charge an extremely high premium that you could honestly use to fix the problem yourself. So to me, my insurance is just a scam as they deny any kind of help and if you put in 2 claims in a year they drop you off their policy.
Vitale Family Law offers North Carolinians the opportunity to resolve family law challenges in a personalized, effective manner. No one wants to waste time or energy on futile efforts. Working with experienced attorneys inspires confidence and helps move cases toward resolution. Lawyers at the firm have prepared diligently to meet the needs of clients facing some of life’s most difficult transitions, including divorce and child custody disputes. Schedule an initial consultation to discuss your situation with an experienced, well-recognized Raleigh law firm.