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1-16-2009 @ 11:23AM
This isn't ponzi in any way. It is a bad investment in the same way that all insurance is losing math just like gambling is losing math. Their only income is your money. They set rates based on a formula where the average person gets less than they pay in. otherwise there would be no profit for them. Thats what all insurance IS. The reason medical/life/house insurance is valuable is that in a catastrophic event, you can get a very large payout at a time when you couldn't otherwise handle the hit. The reason that wow insurance is not valuable is that getting 10 bucks in a non emergency isn't worth paying insurance for.
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