Is it worth buying insurance on electronics?
 

I never purchase the extended warrantee when I buy a new computer, phone, speakers, etc. I figure the company selling the warrantee knows the odds are in their favor. Why should I bet against them?

Is the same thing true of health insurance or are they making more money on their investments for your payments than the odds?

That is where they make all the moola is in extended warranties.

I have some experience in the Insurance industry. I'll give you my opinion, but remember, every situation is different.


The electronic warranty is most of the time a rippoff because any reputable product should come with a warranty suffient enough to cover the risk.

The small find writing usually translates to you getting back the same or less amount of money you have paid in for the 3-5 years before you take advantage of the extended warranty. I have never, never purchased any extended warranty.

repeat: If you buy a really expensive peice of hardware from a reputable company, it shoud have a free waranty good enough to cover the big problems.


As far as Health Insurance. - YES, they are making money on your premiums by investing it. That is no secret. That is their business model. They dont profit on everyone, just the people that dont use it.

They get enough people paying to cover the cost of the few that use it. The rest is invest for profit. Do you need it? Absolutely, 100% yes!!

If your paying to much, I can give you some pointers on how to save money. I am not an insurance salesman, so dont worry about that.

No, 99.9999% of the time you are just wasting your money. Most people don't even remember that they bought a warranty years after the fact, nor will they still have their paperwork.