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Monday, September 14, 2009

Life Insurance Mandate for Dead People

Related Link » A Health Insurance Mandate That Works Like Auto Insurance? Think Again
“Many drivers can go without collision insurance if they like. If a hood is dented on the car of someone without the coverage, that person can drive around with a dented hood. But the only kind of health insurance Obama is talking about is collision insurance. If someone's body is a jalopy, he or she still has to get covered. [...] "The primary purpose of the auto insurance mandate was to provide financial protection for people that a driver may harm [i.e., liability insurance], and not necessarily for the driver himself," they wrote.”
— ‘By Judson Berger,’
The explanations given in the referenced article are correct, as far as they go, but I think there is a better example that would clarify the ridiculous mandate proposed by the Obama administration, namely the part about providing universal health-care insurance regardless of preexisting condition.

Suppose instead of universal health-care insurance we contemplate universal life insurance. Suppose further that we mandate coverage for everyone, regardless of their preexisting life-status. Can you not see how ridiculous that would be? Do you not realize that life insurance companies can not provide coverage for dead people?

Insurance companies exist to provide protection (for an appropriate fee) to people who want to hedge their bets against some perceived (but unknown) level of risk. If the risk is known with certainty, however, no one in their right mind will sell you insurance coverage for it. And no one can be mandated to commit financial suicide; at least not in a free society like ours still is.

Post #936 Life Insurance Mandate for Dead People

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