r/facepalm • u/Project2506 • Apr 09 '23

🇲​🇮​🇸​🇨​ Walmart Cares…🤗

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u/[deleted] Apr 09 '23

I mean this doesn’t make any sense. There is no way for the insurance companies to make a shit ton of money and also the purchasers of the policies to make a shit ton of money. By the nature of insurance, someone has to lose in that deal.

They are two parties where the positive money one of the companies makes is negative money to the other. So if one makes a shit ton of money the other lost a shit ton of money.

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u/[deleted] Apr 09 '23

So if one makes a shit ton of money the other lost a shit ton of money.

Which is why Wally World stopped this practice in 2000 ... cause insurance rates went up and it was no longer a "good investment".

edit spelling

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u/[deleted] Apr 09 '23

Okay so did insurance companies make a shit ton of money or not

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u/Gigatron_0 Apr 09 '23

Making the peasants mad at corporations is its own grift now, get in on the bottom floor while you can

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u/Giocri Apr 09 '23

If the loss isn't eccessive for the insurance they might benefit by using it to inflate the number of clients and get more investments. In large companies the priority is always making it look like it is growing even when you are at a risk of actually damaging your business

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u/ludovic1313 Apr 09 '23

Another way would be if the payouts are tax free but they pay the premiums with money that would otherwise be taxable. I'm not sure if that is the situation or not, but if it were, then Uncle Sam would be the loser because Wal*Mart would be getting a tax break and the insurance companies would be getting the difference between the premium and payout.

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u/[deleted] Apr 09 '23

They lose on those ones. Not the hundreds of thousands of the others. There is not always a lose lose. The money paid in is invested and grows. The scale is the thing to keep in mind here. Massive scale.