Insurance as a Form of Gambling

Gambling is wagering something of value, including money, on an event whose outcome is uncertain. Winning a higher value than what was wagered is the main aim of gambling, and you must have three things (chance, prize, and consideration) for you to gamble.

Insurance is a type of gambling that is very particular in nature, and one wonders why insurance is right while gambling is wrong in the view of many people. Yes, it is (insurance) a way of giving an insured party some degree of protection against a financial loss. This is one element that is outlined in the best online casino slots guide and similar resources. Like any other form of gambling, two parties (insurer and insured) strike an agreement on consideration (wager becomes premium), prize (by calling winnings benefits), and type of chance (expectations when the insured faces a misfortune).

Although the difference between insurance and gambling is legally clear, economically, there may be no clear distinction. Insurance is a phenomenon where money changes hands depending on what happens in the unforeseeable future. In other words, buying insurance essentially means that you’re betting for something bad to happen. On the other hand, selling insurance can be likened to betting that something bad will not happen. In gambling, the odds are mostly in favor of the house- this is a truism. Remember, the house would not exist at all if the odds were not stacked in its favour.

A point worthy of note is that “betting” for a bad thing to happen provides some kind of hedging; hence, it is useful. If something bad happens, you will win your “bet” since the insurer will get you out of the trouble. On the contrary, if you happen to completely avoid misfortunes that need insurance compensation, your insurer wins. This means you’re losing your “bet” to the provider- and it usually happens. Hence, be sure to purchase your insurance wisely to minimise your chances of losing “bets.”