Insurance and Ethics
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Insurance contracts are often seen as a form of gambling. That is because they appear as a type of wager that takes place over the lifetime of the policy. Basically the insurance company is willing to bet that you and your property will not suffer the loss insured against. In exchange for making this bet, and taking on the risk, they receive your premium. If they win the bet, they keep the premium; if they lose, they make the payout. In this sense, they are often compared to a type of long term financial casino.
The difference between your premium amount, and the amount the insurance company will have to pay out if the loss occurs, is simply the odds the insurance company is getting for taking on the bet. It
