The Best Two Minutes

It's Derby Week in the Commonwealth of Kentucky.  Mint juleps are being downed by the thousands, flamboyant hats are adorning ladies' heads, steamboat races and parades highlight every day and, oh yes, there is a horse race with some wagering.  The entire nation joins us in the celebration of "The Best Two Minutes In Sports".

So why all the fuss over this horse race?  Is it the fact that the Derby holds the record for the longest consecutive running sporting event in the US?  Could it be as simple as the opportunity to place a $2 bet and win thousands?  (The highest Exacta payout in Kentucky Derby History occurred in 2005 when a $2 bet paid $9,814.80. By the way, Exacta means you pick the first two horses in exact order.)  Or is the appeal of gambling?

Often, folks tend to equate gambling with insurance.  "I'm willing to gamble that an earthquake isn't going to occur so I am not purchasing earthquake insurance."  "If I purchase this collision insurance and I don't have a wreck, I have lost my money."  Yikes! Insurance is a wagering event like the Derby?

In honor of  the 139th running of the Derby, let's take "two minutes" to dispel the myth that insurance is a gamble.

Gambling creates a risk that did not previously exist - the risk of losing money.  If you don't gamble, you don't lose the money you were going to risk.
Insurance mitigates risk - the risk of a fire, earthquake, theft or other calamity already exists; insurance transfers the risk to an insurer.

Gambling lures you into the thinking that you may "come out ahead" - a $10 trifecta bet may pay you $575.  In fact, you may lose the $10, breakeven or hit it big.
Insurance, on the other hand, promises to put you back in the position you were BEFORE the loss.  If you had a flat screen tv before the fire, a homeowners insurance policy should provide you with a replacement, like kind and quality, flat screen tv.

Gambling has been known to cause much stress and anxiety leading to addiction problems.  The gambler is constantly trying to figure out ways to "beat the system" and "get ahead" - sometimes to the determent of his lifestyle, family and income.
Insurance, on the other hand, provides 24/7, stress-free peace of mind.  After paying your premium, you can rest easy knowing that IF a catastrophe occurs, your lifestyle and income will not be destroyed.  Now that's the kind of dependence problem I like to have!

Now, place your bets for the "Best Two Minutes In Sports" and enjoy the 139th Run For The Roses!