Question

You have been talking at a party to some friends about insurance. One young married couple in the group believes that insurance is almost always a real waste of money. They argue, “The odds of most bad events occurring are so low that you don’t need to worry.” Furthermore, they say, “Buying insurance is like pouring money down a hole; you rarely have anything to show for it in the end.” Based on what you have learned from this chapter, how might you argue against this couple’s point of view?



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  • CreatedNovember 26, 2014
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