If you've ever gambled or bought insurance, you wasted your money. Loads of people gamble and pretty much everyone has some kind of insurance but the fact is, they're both scams. There are no "good guys" in these businesses because the very basics of both gambling and insurance requires it to be a scam. They work because of a fault in our brains that exaggerates the possible futures we hope for or fear.
Whenever we hope for something, we think about it. And the more we hope for it, the more we think about it. Each time we think about it we reaffirm it, making it seem both much more likely and also much better. And the same thing when we fear something. We think about it more and more and that makes it seems both more likely and much worse. I'm going to explain the facts about these scams and the actually very simple math behind them.
We hope we're going to win, so we think about winning. The more we hope we're going to win, the more we reaffirm the idea of winning. After a while, winning seems very likely and also like it's going to make us live happily ever after. But the fact is, you can't win.
Let's take an average slot machine, it has a "payback" of 80%. You put in a dollar; sometimes you're going to lose it, sometimes you'll win some dollars and very rarely you'll win loads of dollars. But on average, you're going to lose 20 cents for each dollar you put in.
You're probably thinking "but there's still a chance I'll win millions!". Nope, we've already taken them into account. The chance is so small that in order to win a million, you'll have to bet 1.25 million. Then you will have lost 250 000. If you're still thinking you can win, it's because every time you hope to win you reaffirm the idea making it seem more likely. "I believe I can fly" but you'll still fall.
Think about it, what is a casino. It's a business. What does businesses do. They make money. And does money grow on trees. No, it doesn't. All the money you can win in a casino originally comes from gamblers that lost that money. Except for the part that went to buying the building and the machines. And the staff, security, electricity, etc and of course: profits.
Let's say we have 100 people betting $10 each. That's $1000 going into the casino. $50 go to paying back the loan for the building, the machines, interior and the security system. Then $50 go to electricity, heat, maintenance, security and all other personal. Finally $100 go into the pocket of the owners.
Of the $1000 put into the casino by the gamblers, $100 has gone to running the place, and an other $100 has gone to the owners, leaving only $800 in the jackpot. This money will now be distributed among the 100 gamblers, giving each one only $8 back for their $10 bets. Almost every single one of them will bet the $8 and repeat the cycle until they're all out of money.
When it comes to insurance, we fear something will go bad, so we worry about it going bad. And each time we think about it we reaffirm it, making it seem like it might happen any day now. And it's going to be utterly terrible. The fact here is: you should've put the money in the mattress.
The insurance company is just like the casino, except they prey on your fears instead of your hopes. They can't give away money, they're a business. All the money they have to give is from people who payed them to get money later in case something goes bad. But some of that money goes to running the scam; advertising and employees mostly.
But most of the money goes into the pockets of the owners. Which is why they spend their time making up reasons for why they don't need to pay you back and why you still need to pay to even get payed. I'd say the owners of an insurance company are actually much more evil than the owners of a casino.
You can never win in a casino or on the lottery. If you could, there would not be such a thing. And you can never benefit from having insurance. Again, if that was the case, no insurance company would exist.
First of all, never gamble. Never ever. Whenever you even get the hint of the thought just tell yourself: "no! I can't win. Only the casino can win. That's the whole point of casinos." and don't let anyone fool you. Stay away from gambling. If you really need to throw your money away, please donate it to charity.
And what about insurance. Same thing. Never ever buy insurance. Save the money yourself. Saving money is important because you may very well need it some day. If you get insurance and nothing goes bad, you've wasted your money. If something does go bad but the insurance company says you're not covered, you've wasted your money. And if you somehow get them to pay, you'll only get half of what you've payed them.
Cancel your insurance and save your money yourself. If something goes bad, you don't have to prove you're covered or pay any kind of fees. And you'll have much more money to solve your problem with. And if nothing goes bad, you can use the money for whatever you want!