My Friend Thinks Insurance Is a Scam—Genius or Foolish?

[yuppieboy]

Insurance is mostly either for poor people who doesn’t have much savings, or for the very rich who otherwise can’t finished spending their wealth in their lifetime.

 

[dontwastetime]

First we already have medisafe

What if I told you that insurance companies only insure people that do not need it?

Statistically, when they insure you, they have already known that you are very unlikely to claim it or are unable to claim it due to terms and conditions.

The people who keep saying that insurance helped them are the ones that strike the reverse lottery and of course these people will keep coming out of the woodwork to tell you that insurance really saved them, which is true,

but if you think about it carefully, if it is so highly possible that you will make a claim, then the insurance company will have closed down long ago.

 

[iceblendedchoc]

I have a friend who is well-educated, smart, and even works as an engineering manager. By all accounts, he should be financially savvy. But here’s the kicker—he refuses to buy any insurance. No health insurance, no life insurance, nothing.

His reasoning? He thinks it’s a waste of money and believes in “challenging the odds.” When I asked him how he plans to handle a major medical emergency, accident, or financial catastrophe, he shrugged it off. “I’ll deal with it when it happens,” he says.

The crazy part? He has a young daughter, and his wife used to work at Google, so it’s not like he doesn’t understand risk or financial planning.

It’s honestly puzzling to me. Am I being overly cautious, or is he taking an insane gamble with his family’s future? Is he a genius who has cracked the system, or am I the fool for thinking insurance is a necessity?

Curious to hear what others think—would you ever go completely uninsured?

By the way - he’s from Hong Kong, and likely has settled down as a permanent resident with his family.

Investment insurance are a scam for sure. Health insurance is optional if he is pink ic since all of us are covered for the lowest ward. Term insurance is only necessary if there is liability to cover in case of one passing. His daughter already working so no need to provide for her.

 

[Lchlch]

travel insurance is a must if you travel overseas holidays.

 

[alpha_beta]

lol ever heard of self insurance ?

 

[Philipkee]

depends if he is smart in investment. if he is able to cover what the insurance can cover for him via own investment with the less amount paid to inusurance company, insurnace looks like a scam lo because still need to pay commission to those insurance agent leh

Yes. If u spent $30k on insurance for a $1 million dollar coverage but you can earn $1.1 million from investing $30k, then it makes sense

But insurance you are covered from first premium paid while investing you need the entire sum (unless u do something like bitcoin when the earnings from the first premium already can exceed potential coverage value)

 

[caterham7]

I have a friend who is well-educated, smart, and even works as an engineering manager. By all accounts, he should be financially savvy. But here’s the kicker—he refuses to buy any insurance. No health insurance, no life insurance, nothing.

His reasoning? He thinks it’s a waste of money and believes in “challenging the odds.” When I asked him how he plans to handle a major medical emergency, accident, or financial catastrophe, he shrugged it off. “I’ll deal with it when it happens,” he says.

The crazy part? He has a young daughter, and his wife used to work at Google, so it’s not like he doesn’t understand risk or financial planning.

It’s honestly puzzling to me. Am I being overly cautious, or is he taking an insane gamble with his family’s future? Is he a genius who has cracked the system, or am I the fool for thinking insurance is a necessity?

Curious to hear what others think—would you ever go completely uninsured?

By the way - he’s from Hong Kong, and likely has settled down as a permanent resident with his family.

I also do not buy insurance

Major difference for me, I still have medishield life

Personally do not see the need for extra insurance

 

[ceestudent]

I heard ex colleague saying they have few insurance agents...
why so many?
1 is more than enough.

I hope more insurance companies allow people to buy term directly. It is much better than getting from agent.
Afterall, agent always have own interest as their job is commission-based.

 

[cheryl81]

Ur friend is NOT WRONG and totally entitled to his opinions.

INSURANCE is a product bought to manage RISKS. Personal insurance like health insurance is bought to manage the RISK of being hospitalized and slammed with huge medical bill.. But your friend can argue that he will never use hospital ever in the 1st 50 years of his life, so wait until 51yo then buy health insurance. That is totally logical. He put risk of hospitalization before 50 yo as ZERO.

Same thinking: I won't buy simi insurance for hearing damage if I know I will not be exposed to loud sounds ever in my life. But I will bye hospitalization insurance because I think there is a NON ZERO chance of my jena hospitalized... especially in today's SG, which is so much more dangerous.. The "SG is safe" mentality is a modern myth since LHL took power.

But one day if he suay suay kena hospitalized, he will have to pay for his own bills.

but hor make sure he do not have any problem, see specialist they also take into consideration, and they will not cover for this in hospital shield.

Last year i went for gastro scope, i never intend to use the shield plan to pay. but i dk why insurance company auto want to claim. start to ask many question on my side, my doctor side.

den check say since 2013 i have such gastro issue so they are not going to cover this in my hospital shield plan.

 

[artncraft]

When one hits the hospital, the last thing the person wants to worry about is hospital and recovery bills.

 

[Linguist]

I have a friend who is well-educated, smart, and even works as an engineering manager. By all accounts, he should be financially savvy. But here’s the kicker—he refuses to buy any insurance. No health insurance, no life insurance, nothing.

His reasoning? He thinks it’s a waste of money and believes in “challenging the odds.” When I asked him how he plans to handle a major medical emergency, accident, or financial catastrophe, he shrugged it off. “I’ll deal with it when it happens,” he says.

The crazy part? He has a young daughter, and his wife used to work at Google, so it’s not like he doesn’t understand risk or financial planning.

It’s honestly puzzling to me. Am I being overly cautious, or is he taking an insane gamble with his family’s future? Is he a genius who has cracked the system, or am I the fool for thinking insurance is a necessity?

Curious to hear what others think—would you ever go completely uninsured?

By the way - he’s from Hong Kong, and likely has settled down as a permanent resident with his family.

Maybe he super rich so he don't need insurance. U buy insurance, insurance companies used that money to invest to "gain"...

but hor make sure he do not have any problem, see specialist they also take into consideration, and they will not cover for this in hospital shield.

Last year i went for gastro scope, i never intend to use the shield plan to pay. but i dk why insurance company auto want to claim. start to ask many question on my side, my doctor side.

den check say since 2013 i have such gastro issue so they are not going to cover this in my hospital shield plan.

U bought the shield plan after 2013?
Basic shield plan not cover everything concerning hospitalisation?

 

[ceestudent]

Insurance is mostly either for poor people who doesn’t have much savings, or for the very rich who otherwise can’t finished spending their wealth in their lifetime.

You sure boh? Usually the rich have most insurance. That's why some minister can do bypass with 8$ only.

Sometime i find it ironical. People who need insurance the most, don't have. People who can afford to ownself pay because they are rich, need to pay very little.
This is the world we live in.

 

[winningeleven]

I wonder those who like to go JB offen would also get travel insurance too?

 

[aCAcIAsEED]

Used to have a secondary school classmate who doesn't believe in insurance until his mom struck with illness. Then, he believed.

As long as nothing happen, it is OK, if one doesn't has. But it will be too late if it happened, saving will be emptied in no time(depend).

I have hospital plus term. The agent told me, I am money making machine, thus cannot have down time, that is cost.

 

[cheryl81]

Maybe he super rich so he don't need insurance. U buy insurance, insurance companies used that money to invest to "gain"...

U bought the shield plan after 2013?
Basic shield plan not cover everything concerning hospitalisation?

yes after. like last year.
basic shield plan should have but want to have add on

 

[Emperor_Hippo]

I have a friend who is well-educated, smart, and even works as an engineering manager. By all accounts, he should be financially savvy. But here’s the kicker—he refuses to buy any insurance. No health insurance, no life insurance, nothing.

His reasoning? He thinks it’s a waste of money and believes in “challenging the odds.” When I asked him how he plans to handle a major medical emergency, accident, or financial catastrophe, he shrugged it off. “I’ll deal with it when it happens,” he says.

The crazy part? He has a young daughter, and his wife used to work at Google, so it’s not like he doesn’t understand risk or financial planning.

It’s honestly puzzling to me. Am I being overly cautious, or is he taking an insane gamble with his family’s future? Is he a genius who has cracked the system, or am I the fool for thinking insurance is a necessity?

Curious to hear what others think—would you ever go completely uninsured?

By the way - he’s from Hong Kong, and likely has settled down as a permanent resident with his family.

ok loh. let him deal with it when it comes loh.

i mean worst case scenario, he let his dotter go stand at geylang and u draw first blood in repayment for his medical bills loh. like how they do it in China.

after all, better u (cos u are someone he knows and can trust) than 5000 other random strangers for $200 a pop!

 

[artncraft]

You sure boh? Usually the rich have most insurance. That's why some minister can do bypass with 8$ only.

Sometime i find it ironical. People who need insurance the most, don't have. People who can afford to ownself pay because they are rich, need to pay very little.
This is the world we live in.

The lower-income and retirees who are not rich are mostly covered by government subsidies.

It is the middle-class that has to worry as they have very few subsidies.

 

[Emperor_Hippo]

Used to have a secondary school classmate who doesn't believe in insurance until his mom struck with illness. Then, he believed.

As long as nothing happen, it is OK, if one doesn't has. But it will be too late if it happened, saving will be emptied in no time(depend).

I have hospital plus term. The agent told me, I am money making machine, thus cannot have down time, that is cost.

ur agent not exactly wrong.

but like all good agents, they shldn't be pushy.

i am quite lucky my agent is my classmate who knows my character. so she doesn't push, and i don't talk shop with her unless its a need for retirement, or insurance.

we all know how market's faring in our hearts so we don't have to talk to each other for something we already know.

 

[windwaver]

I have a friend who is well-educated, smart, and even works as an engineering manager. By all accounts, he should be financially savvy. But here’s the kicker—he refuses to buy any insurance. No health insurance, no life insurance, nothing.

His reasoning? He thinks it’s a waste of money and believes in “challenging the odds.” When I asked him how he plans to handle a major medical emergency, accident, or financial catastrophe, he shrugged it off. “I’ll deal with it when it happens,” he says.

The crazy part? He has a young daughter, and his wife used to work at Google, so it’s not like he doesn’t understand risk or financial planning.

It’s honestly puzzling to me. Am I being overly cautious, or is he taking an insane gamble with his family’s future? Is he a genius who has cracked the system, or am I the fool for thinking insurance is a necessity?

Curious to hear what others think—would you ever go completely uninsured?

By the way - he’s from Hong Kong, and likely has settled down as a permanent resident with his family.

If he's ok with medishield life then ok loh

 

[ceestudent]

I wonder those who like to go JB offen would also get travel insurance too?

This one defeat the purpose of saving leh. Haha
The demographic of people like to get insured and JB traveller should be totally opposite..