Insurance is basically a form of risk-pooling.
In its simplest form, it's like a game of 4D, every week in week
out(or' month' for insurance), people put in a small amount of
money in the hope of getting the prizes. Some lucky ones win, but
the odds are always with the house, and the house wins in the long
run.
The main difference is, insurance pay out the 'winning money' only
to the people who needs it, and the amount according to how much
they suffered. I must, however, stress that insurance is not
gambling because no one buys insurance in the hope of losing your
arm/eye/life just to get the money.
Sales tactics parallel to that of MLMs, but however, may i ask are
agents able to recruit more agents down the line to sell? Do they
have some limit imposed on the number of agents allowed? Are they
required to satisfy some criterias in order to join?
