corrosion0wns explained it for you, I just wanna say this bit; God forbid entering to an argument with you because well, you're a moron. I don't understand how you call that logic, lol oh man... yeah you're a moron.
@manuelturcios Make a vid response. This world requires you to prove them as morons. You are the moron for calling people moron without a video response.
@PoliticalWeekly I'm sorry for calling you a moron. Doesn't make your claims right though. I suggest you thoroughly read what Corrosion0wns explained to you, If you don't understand it I'll be happy to explain it in a way that you could.
Here's why you're wrong, and why you dont understand:
Post #1
The employer who purchases the insurance policy is not looking to turn a profit, nor are they planning to have a loss on average, either. The same goes for the insurance underwriter.
If there was a 5% chance an employee dies, and the employer estimated a cost of $10,000 in time and materials for a new hire and training, they should be willing to pay 5% of $10,000 in premiums, equal to $500, on a policy worth $10,000.
With that policy, the employer would "break even" on every plan. However, you are right (by sheer luck), that it is the tax system that gives incentive for the employer to do this. The premium paid represents a cost to the company, which it can deduct from its income, lowering its income taxes. In this way, it breaks even on its insurance policies, but "makes money" from reduced taxes.
See post #3 for how the insurance company is actually profiting from a plan that "breaks even".
The insurance underwriter is also breaking even on a policy worth $10,000, being claimed 5% of the time for a premium of $500. However, they do this on purpose. They receive money today, and have to pay it back at some point in the future. This generates a "float", which they then invest to earn income in the meantime. Insurance underwriters make far more money from investment income on float than they do on policy premiums.
I hope this helps you understand why this is profitable.
WTF did you say? it's moral?!?! I DON"T THINK SO.
privacyvideo4u 9 months ago
corrosion0wns explained it for you, I just wanna say this bit; God forbid entering to an argument with you because well, you're a moron. I don't understand how you call that logic, lol oh man... yeah you're a moron.
manuelturcios 11 months ago
@manuelturcios Make a vid response. This world requires you to prove them as morons. You are the moron for calling people moron without a video response.
PoliticalWeekly 8 months ago
@PoliticalWeekly I'm sorry for calling you a moron. Doesn't make your claims right though. I suggest you thoroughly read what Corrosion0wns explained to you, If you don't understand it I'll be happy to explain it in a way that you could.
manuelturcios 8 months ago
Here's why you're wrong, and why you dont understand:
Post #1
The employer who purchases the insurance policy is not looking to turn a profit, nor are they planning to have a loss on average, either. The same goes for the insurance underwriter.
If there was a 5% chance an employee dies, and the employer estimated a cost of $10,000 in time and materials for a new hire and training, they should be willing to pay 5% of $10,000 in premiums, equal to $500, on a policy worth $10,000.
Cont'd #2
Corrosion0wns 2 years ago
Post #2
With that policy, the employer would "break even" on every plan. However, you are right (by sheer luck), that it is the tax system that gives incentive for the employer to do this. The premium paid represents a cost to the company, which it can deduct from its income, lowering its income taxes. In this way, it breaks even on its insurance policies, but "makes money" from reduced taxes.
See post #3 for how the insurance company is actually profiting from a plan that "breaks even".
Corrosion0wns 2 years ago
Post #3
The insurance underwriter is also breaking even on a policy worth $10,000, being claimed 5% of the time for a premium of $500. However, they do this on purpose. They receive money today, and have to pay it back at some point in the future. This generates a "float", which they then invest to earn income in the meantime. Insurance underwriters make far more money from investment income on float than they do on policy premiums.
I hope this helps you understand why this is profitable.
Corrosion0wns 2 years ago