Financial Times FT.com

It’s the way they sell ’em

By Tim Harford

Published: February 23 2008 00:26 | Last updated: February 23 2008 00:26

Here’s what I like about insurance: you pay the insurers money when you do not desperately need it, and then the insurers pay you money just when you need it most.

Curiously, this is not what other people seem to like about insurance. Most people do not try to arrange for insurance payments to arrive when they will need them most. Instead, they arrange for insurance payments to arrive after bad luck.

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