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"There are those who will say that you're running a large risk by dropping the disability. However, I stand by my position--the insurance company is betting heavily that you won't need the payout until your premiums have accumulated, in the company's investment program, to the point of covering the value of that payout."

No, that is not the "bet" the insurance company is making, as you indicate later in the post.

"I'd take them up on that bet--only let the premiums accumulate in your pocket, instead. It is a somewhat one-sided bet though--if the insurance company loses, it can make it up from all the other winning bets it has on the table. You, the individual, have no such reserve."

The bet you described in the first paragraph is the bet that you are asking the individual to take. The insurance compnay is "betting" that notmore x% of the total people insured will not claim the insurance before the premiums accumulate AND before the earnings on those premiums accumulate. Insurance companies invest premiums paid before they are need for pay out (the float) and earn a return with them.

"Having thought it through a priori, and having been through one example, though, my wife and I remain uninsured beyond the free stuff that's part of our respective employment compensations. (Incidentally, when I declined any health coverage at my job(I would have had to pay some of the premium), the company paid me most of the premium they no longer had to commit to cover me.)"

It is your life to live; I only hope that you have no reason to regret your decision. Personally, I do not think thatyou have fully understood all the risk or the fundamental "risk sharing" approach to all non-life insurance products.

Regards, JAFO

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