How do I respond whether I agree or disagree with the two posts below?

Post 1

The article talks about the Law of Large Numbers. Another concept that is applied in real life is the fundamentals of probability. I talked a little about this when we were reviewing statistics. Sometimes science and theory seem perfect, but in actuality, that is not always true. Think of rolling a 6 sided dice. You have a 1 in 6 chance of rolling the number three. You also have the same probability of rolling a 2. However, you could roll the dice 100 times, land on the number 3 fifty times, and only roll on the number 2 twice. I had talked about how in football, some coaches use analytics that gives them probabilities to go for a certain play. Sometimes it works out, other times, it does not.

Each one of insurance has its own variables that might affect a policyholder. I know car insurance, for example, is more expensive for young boys than for girls. (Lynch, 2022). Gender & age are variables for car insurance. Home insurance might fluctuate based on location. Growing up in my small river town, residents were required to have flood insurance tied into their home insurance packages if they were getting a home loan through a bank. These variables showcase specific statistics that help calculate those premiums. If, statistically, young men are more reckless at driving than young women, it would make sense why their premiums are more expensive. If your home was more prone to forest fires than a home that was not, you might have to pay more for home insurance. Again, if an insurance company has 1,000,000 homes paying their insurance policy each month and only 100 of those homes need a payout, the insurance company can continue to do what it does.

You may be required to get a physical for life insurance because the life insurance company sees you as an asset in some ways. They want to get a risk assessment done on you so they can determine what kind of liability you might be and how long they should expect to collect your premium before paying your death benefit. Therefore, young, in-shape individuals should have a smaller premium than someone much older than them, perhaps.

Post 2

Other big concepts are homeowners, rent, vehicle, property, medical, and commercial insurance. Insurance means "just in case money." One thing I see they omitted from this article is that the premiums they collect every month go into the stock exchange. They use our money to trade in the open market every day. Billions of dollars are being made off of our money. They also employ the best lawyers in the game. Even though the article claims to want to make sure they pay out policies when needed, they do their best to find ways that the consumer voids the contract. That's precisely what it is, a contract between you and the company. For life insurance, it states that in the event of my death, there will be a monetary benefit paid out to who I have listed, but it comes with clauses.

Variables for life insurance include your health when opening the contract, your career type, your extracurricular activities, etc. Medical insurance will base your coverage on your state of health. Any disease diagnosis, viruses, or family history of the disease can disqualify you from specific policies because of the liability. Remember, they don't want to HAVE to payout. The most lucrative and primary coverage that's offered is "term." Let's say you have a 20-year term policy, and you pay every month (on time); you make it to 20 years and one minute!?! Then it's over. Those payments end, and you get nothing out of it. It's pushed on younger people (20s and 30s) because the current average life expectancy is far beyond that. Variables for car insurance include the vehicle's type and worth, age, driving experience, driving record, gender, and average miles driven in your term policy. They also have different levels of policies, full coverage, and liability only. In my personal experience, it hasn't paid for itself much. I've been a licensed, insured driver for 22 years and have only made 2 claims. I've always carried full coverage, and I've always had multiple vehicles at one time. I don't even want to calculate how much I've paid.

The Law of Large Numbers is calculated by grouping by age, gender, and location of the insured parties. Most life insurance companies require a physician to determine the likelihood of how long you'll live and what your premium should be set at. They don't want to take the chance of insuring someone terminally ill or in extreme sports for too low of a bonus. Also, the younger you are, the longer they expect to collect money from you, so your monthly payments can be cheaper.