👉 Insurance vs Cash Pay is like comparing two very different things; insurance pays when something bad happens, and cash pays if you're lucky enough to survive.
Let's say there are two employees who have a really big house they just moved into in their new city. The first person has an extremely large paycheck, which means they are already saving up for a deposit on their house and will need insurance coverage as well since they don't own it yet. They have a $200K house insurance policy that pays out if something bad happens. The second employee is on the other end of the scale: they have a small savings account, so they don't have any cash to pay for their housing needs. They're also in the process of saving up money for their home down the road and will probably need some sort of financial tool like a mortgage or a loan. This means that they're getting paid less than what they would if they had cash. So, insurance pays when something bad happens, but cash pays if you're lucky enough to survive. And this is where it gets edgy because when the first employee has $200K in their savings account and can pay off a mortgage and start saving for his home, he's feeling pretty good about himself. On the other hand, the second employee who still hasn't saved up anything yet isn't getting any benefits from insurance. Insurance vs Cash Pay is all about comparing two very different things that we tend to view as important but not
