Most aspects of capitalism is a win-win. If employers do a lot of money from the workers because of rising worker productivity, employers hire as many workers as possible – the wage increase for workers. " Is why for many aspects of capitalism, people are looking to benefit from the other in every way possible. However, not all aspects are win-win. If the same shops selling the same product at a different price, of course, choose the cheapest package. In this case, choose a package that makes profits tend to shop more painful. The same thing for the insurance. A good rule of thumb, if an insurance package is good for you or not, whether the insurance program has a lot of money to implement it or not. No, I do not pretend that these huge profits should be banned. Conversely, if an insurance company makes a lot of money, then you invite competitors who move their profits with her. The free market is still the best in this area. I maintain that no such insurance you can buy. Likewise, I am not arguing that traders should not make much money, which their products to you. I contend that you should buy the business that offer the best product and service at the lowest cost. Here is how capitalism works. Following are the insurance programs in which insurance companies a lot of money. Therefore, avoid these programs like the plague. Flight insurance is the safest way to travel by plane. There is a statistic that says that if you travel by plane every day 1,000 years ago, you probably get a plane crash once. Even then survive. However, aircraft accidents are always reported on television. Caused anxiety. People act on emotion and the feeling that the flights are much less secure. Not only life insurance that covers your life. Mortgage life insurance, I found that it is better to buy term life insurance. Once again the ideas that are in general insurance businesses, which are mixed with something else such as a mortgage or savings, are badly in general. Things are mixed, consumers are confused. The more confused the consumer, more money for insurance coverage. Credit Card Insurance Lost Prevention by law, which is lost up to $ 50 limited. So do not buy. Accidental Death Insurance stick, a regular old term good insurance. The probability that you will die because of accidents is lower than you think. Car Insurance This is demolishing another. Insurance companies too much. Chances are, it is already covered by your regular car insurance. Thinking in this way, you can use the car for a whole year. If you rent a car for 1 day, then the probability that there should be a car crash on day 1, approximately 1 / 365 of the regular car insurance. However, the rental car insurance is sold at a price significantly higher than that. Children of insurance "Mom, our children are dead, I'm so sad. But fortunately we have assured them. So we came in cash. "There are only two ways in which children were to buy insurance. Earlier, when the child is the breadwinner of the family. Secondly, if you plan to chop into pieces. Let me explain more, because when we realized the true nature of the insurance http://FasterFinancialFreedom. com / art. 390. 0. html. Identity theft insurance claim to go through the hassle of insurance coverage is better for checking your credit report issued free of charge. Insurance, risk and asset management Every time you are in a $ 1 insurance, you probably $. 50. The remaining $. 50 it to insurance companies and their dealers. For the most part, the ratio is even higher. For example: Suppose you buy term insurance for $ 1 million. Suppose you pay $ 2000/year for this type of insurance. And I bet that the insurance companies know that the probability that you are dying, is this year only 1%. To make the insurance companies $ 2 for every $ 1 they pay in claims. The more complicated the insurance, the higher the ratio. In insurance, learning, for example, insurance companies probably $ 5 each $ 1 they pay. You can not win in the insurance industry through the purchase of several insurance companies. The real profit comes not from a higher expected value of your return. Your profit is from increased stability of your business. Suppose you have a lot of houses, is all in the bank. Say one of them is in flames. Then one can cost $ 100,000 U.S. dollars thus lost more than $ 100,000. Maybe force you to concentrate on your other homes for sale at reasonable prices. We see how financial instability can beat out of business? Insure this. Even with insurance, income from year to year, it will be smooth. Women as a stable income. IRS is forgiving a regular income. You pay less tax if you earned $ 50,000 per year for 10 years in a row that, if you earn $ 100,000 per year for 8 years and lost $ 150,000 per year for the next 2 years. In the first case, you will be placed on the lowest income tax bracket and relieve you from paying the tax on the additional $ 50,000 per year you'll lose. So, what are the tips? Insurance does not remember, for the benefit of insurance to stabilize yields is. If you provide more, your income is unstable, because we again make more money if your house is on fire, if they continue in office. Well, some people have more than love. The only time that can be profitable, and if you plan to burn the house. This is not acceptable. Insurance companies understand that those who are insured are less likely to guard his house and watch the fire codes, and so on. So they charge higher premiums. Hold the insurance co-payment in many high threshold, you pay the first 10,000 U.S. dollars. The insurance pays in addition to the cost. Suppose that destroy your car. They say, the cost $ 5,000. You pay for them. However, if the price is $ 100,000, then you pay that cost 10,000 U.S. dollars, and the insurance pays $ 90,000. Why is the high co-payments? First, insurance support is not easy. There are a lot of fraud going on, and there are a lot of administrative processes that need to be made. If the insurance company's administrative costs offered by the actors, they will lose customers. "Oh, I lost my house but I have to shell more money to get money from my insurance company." Only governments can do such cruelty and to stay in business. So what to do about insurance? They represent the administrative costs of the premium. So that the price is high. After all, if your loss is small, why not pay just? Save the premium, less investment will be more than enough to pay for small losses, without financial stability. There is never a good idea to apply for low losses. Submission of such claims insurance companies will mark you as a high risk. Thus, the premiums will be increased even further. The problem with the sale of life insurance term life insurance you get when you're dead. Well, sometimes you can get your money before you die. This process is called dissolution Viatical. And it is only for those who are terminally ill whho work. Thus, an investor pays a reduced version of the cover. After death, the investor receives the coverage by insurance companies.