OP, have you ever had to file a claim? Example: Insuring your home and contents, say a value of $500,000.00. Your insurance premiums are say, $4000.00 per year. Claim free for 10 years. Then tragedy strikes, your house and contents burn to the ground. No fault of yours. The insurance company pays you out $500,000.00 Can you are someone else tell me how this is a scam? The same can be applied to medical insurance or life insurance. You will NEVER pay more than what the value of that policy covers. I have been an insurance broker for 28 years(life, disability and healthcare insurance). A business client recently died. She had $4.8m of life insurance. Her monthly premium for that was $1100.00. She had paid into this for just over 2 years. I can go on and on and on.