What the difference of insurance and gambling?

Answer 1

One difference is, with insurance, you are actually purchasing a product, insurance coverage. It is true that you may never use it, but you still have the product, and in some cases, such as car insurance, it's required by law in some places so you have to have it. When you gamble, you are risking money to try to win more money, not purchasing a product.

Answer 2

If you mean life "insurance," a full life policy will always pay off, but you won't ever see he money. Only the beneficiaries will see the money. A term policy will pay off if you die within the policy period, but most people use term policies as temporary policies until they get a permanent policy.

In gambling, you are trying to determine what you think the outcome of some event will be, and in the long run, you will always lose. Additionally, life insurance policies normally have a cash value and can be surrendered at any time. In gambling, there is no cash value. Once you lose, that money is just gone.

Answer 3

Gambling creates a risk situation that offers an opportunity for gain as well as for loss. Insurance deals with "pure" risk. There is the possibility that a certain event will occur, e.g., accident.

Crif Johnson

Answer 4

Insurance is when you pay for something to protect your homes, cars, or even life. Gambling is when you spend money to bet on horses, sports, cards, etc.