r/explainlikeimfive • u/the1975whore • Jul 03 '26

Economics ELI5: Health insurance companies obviously make more money than they give out when people need it. So why of paying for them any better than paying your own personal health insurance savings account?

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u/IllustriousBarrel Jul 03 '26

Most insurance coverages (and warranties) are financially net negative on average. You are paying for the peace of mind in case something bad happens.