economics of insurance(4)

At this point,a sporting man will say,"So what?Of course,a man gambles when he does not buy insurance.But the odds on such a bet are not unfavorable.In fact,they are favorable,because we know that the insurance company is not in business for its health.it must keep records,support insurance salesmen,and so forth.All this costs money and must be "Loaded"onto the insurance premium,detracting from the perfect mathematical odds of the buyer and making the odds for the non buyer better."
To which a rational man will reply; "When I am among friends,i don,t mind a small game of chance for relaxation even at slightly unfavorable odds.But when a big bet is involved,even if the odds are favorable,then I pass.I insure my house because I hardly miss the premium each year;but if it burned down without being covered,I,d feel the loss an awful lot.When I insure,my living standards over time and my income remain the same,come what may.when I don,,t insure,I may be up for a while,but I risk going way down."