AAMI

The truth is, I regret my insurance premiums every year, unless I claim on insurance.

When you think about it, insurance is like gambling. Over your life you’re guaranteed to lose because the insurance companies are profitable. That is, you pay them more than they pay you.

The longer you play, the more you regress to the negative mean return on investment, which is the simply the negative value of their average profit margins.

One simple way to hedge this stupid loss making gamble is to buy an equivalent dollar number of shares in your insurance company each time you pay your premium.

Here’s a better idea – a new form of insurance. A premium that just gives you access to a long term zero interest loan to cover your insurance claim.