Insurance and The Lottery

by Michael on February 5, 2010

in Disability insurance,Final Expense,Health insurance,life insurance,Retirement,Taxes,Uncategorized

It’s not uncommon for people to have the view that insurance is like the lottery … a big gamble.

For a person who has never filed a claim, I guess I understand them having this view. However, I want to examine this conclusion for just a moment.

According to information posted on the Internet:

The odds of winning the California Super Lotto Jackpot are 1 in 18 million! Other lotteries may have slightly better “odds”, such as 1 in 15 million! (Feel better now?)  Here is another way of looking at it:  If one person purchases 50 Lotto tickets each week, they will win the jackpot about once every 5,000 years.

How do those odds compare to the odds of an insurance claim being filed?  For instance, what about the chances of ever needing disability income?

If you are currently 25 years of age, there is a 1 in 44 chance you will be disabled and unable to work at some point in your life.  This statistic increases with age, so that, when you are 55 years of age, the chances have increased to 1 in 27!

Similarly, what about the chances of  needing some type of in-home or facility care (non-hospital) when a person gets older?  To answer this, I will quote from the respected, Wall Street Journal, which stated

… a couple turning 65 has a 75% chance that one of them will need long term care.

This high risk can also affect the entire family where the children are at risk of a negative inheritance, also according to the Wall Street Journal.

Along these same lines, The National Academy of Elder Law Attorneys did a study and compared the risk of needing long term care with the risk of other financially devastating risks, such as a major auto accident, or a fire in a person’s home. According to that study, the rates of risk were:

  • Automobile accident 1 out of 240 [0.4%]
  • Fire damaging your home 1 out of 1,200 [0.08%]
  • Needing long term care assistance 1 out of 2 [50%]

Of course the chance of dying is 1 in 1 [100%].

The biggest difference between the two “products” is – the lottery appeals to peoples desires, while properly selected insurance provides “Real Solutions for Real Risks”.  Sometimes the real reason we do not make decisions about insurance coverage, is that we “know” we can’t afford all the types of insurance we could buy, so we just kind of dismiss them all.

I am here to help you.

I will never pressure you to buy this or buy that. I will provide you objective and well-researched information to tailor the product to your need and circumstances.  This is true whether you’ve bought insurance in the past, or if you’ve put off buying insurance. I will help youget the best value for your hard earned dollars.

What is the cost of the insurance? Obviously this depends on you and your needs, but one thing I will assure you: it’s a lot less than buying lottery tickets!

Just ask … I can help! Call me at 209-390-1163 and I will show you the best way for you.

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