Insurance

Today's lesson is Insurance 101. I just found out that the transmission went out on my car so I called Car Shield to buy a policy and was told I had to get the insurance before I had a claim. I went to the lake and found my cabin was in flames so I called State Farm to buy fire insurance and they said I had to buy it before the fire. I just came from the doctor and found out I only have a few weeks to live to I called Prudential to buy life insurance but they said I had to buy before I got sick. But don't give up yet. I found out I live in the flood plane so I waited until the river looked like it would be a problem and called the federal flood insurance and they said as long as I buy within 30 days of the flood I am covered. Most people wait and many times no flood comes. The result is the program lost $2 billion last year and had to borrow $36 billion from the government to pay claims. Obamacare allows a person to buy health insurance after they get sick and the program cost the government $91 billion last year. This is after they collect on average $500 per month in premiums along with an average $6000 per annual deductible. The lesson to be learned is that if you want to run an insurance company and stay in business you have to declare that the policy must be purchased before the event.