The Truth About Insurance: A System Built to Exploit, Not Protect
Insurance is one of the biggest scams ever sold to the public under the guise of “security.” Whether it’s health insurance, car insurance, home insurance, or life insurance, the reality is the same: insurance companies are not in the business of helping people—they are in the business of making money.
The entire system is built on deliberate exploitation—taking money from people in times of security while finding every possible loophole to deny them when they actually need help. It is a system that preys on fear, profits off suffering, and prioritizes shareholders over human lives.
The problem isn’t just the corruption inside individual companies—it’s that the entire industry is designed to take more than it gives.
Insurance Exists to Extract Wealth, Not Provide Safety
The premise of insurance seems reasonable: you pay a little bit over time so that if something bad happens, you don’t face financial ruin. But in practice, the system is rigged to ensure insurance companies always win.
The fundamental truth about insurance:
Insurance companies do not make money by paying claims—they make money by denying them. The less they pay out, the more they profit. This is why claims get delayed, denied, or drowned in endless bureaucracy.
Premiums go up, but coverage gets worse. Every year, people pay higher rates while deductibles, co-pays, and out-of-pocket expenses increase. You’re paying more for less protection.
They invest the money you give them, and you see none of the profits. While you’re paying monthly premiums, insurance companies are taking your money and investing it in stocks, real estate, and even lobbying against consumer protections.
People are essentially forced to buy insurance, and yet when they actually need to use it, they’re often left fighting for basic assistance.
Health Insurance: The Ultimate Racket
No part of the insurance industry is as morally bankrupt as health insurance. In most developed countries, healthcare is a basic right—but in the U.S., it's a business. And in any business, profit is the goal, not care.
Medical claims are routinely denied for no reason. Insurers know that most people won’t have the energy or resources to fight back, so they deny first and deal with appeals later.
Prior authorizations delay or deny critical care. If your doctor recommends a treatment, your insurer still has the power to say no. This leads to unnecessary suffering and death, all to save money.
Out-of-network charges make basic care financially devastating. Even if you have insurance, one wrong hospital visit could bankrupt you because you didn’t check if every single doctor in the building was in-network.
Insurance companies dictate medical decisions, not doctors. A treatment might be necessary for your survival, but if your insurer won’t cover it, your doctor’s recommendation is meaningless.
In any ethical system, healthcare would be about treating people. In the insurance system, it's about extracting as much money as possible while paying out as little as possible.
Car and Home Insurance: Paying for Protection That Doesn’t Exist
The illusion of insurance becomes especially clear with car and home insurance. You are legally required to pay for it, but when disaster strikes, you suddenly find out how many ways the fine print allows them to refuse coverage.
Car insurance companies look for any excuse to deny claims. If you’re in an accident, they will investigate you more aggressively than the person who hit you—because their goal is to avoid paying.
Homeowners insurance won’t cover you when you need it most. If you live in a high-risk area, they’ll either deny your policy altogether or charge insane rates. After a disaster, many homeowners find out they were underinsured or that “fine print” exclusions leave them on their own.
Payouts are deliberately lowballed. If you do get a claim approved, insurers will offer the bare minimum, betting that most people won’t challenge it.
Car and home insurance don’t exist to help you recover from a crisis—they exist to collect your money while minimizing what they owe you in return.
Life Insurance: Betting Against Your Existence
Life insurance is the most sinister version of the insurance model. It functions on the premise that you’re paying to take care of your loved ones after you die, but in reality, the industry profits when you die at the wrong time.
If you die “too soon,” they’ll try to deny or reduce the payout. The company loses money if you die early, so they will look for technicalities to avoid paying.
If you die “too late,” they’ve already made a massive profit off your policy. Many life insurance policies pay out far less than what people paid in over their lifetime.
They count on people forgetting or missing small print. Many policies have expiration dates, restrictions, and clauses that allow insurers to avoid paying entirely.
The house always wins. Life insurance companies profit either way—whether you die too soon, too late, or in a way they can legally deny coverage.
Why This System Will Never Be Fixed
Insurance is one of the most profitable industries in the world because it is built on legalized fraud—promising protection while actively working against the people paying for it.
Why won’t it change?
Insurance companies control lawmakers. The industry spends billions lobbying to prevent regulations that would protect consumers.
Most Americans don’t understand how rigged it is until it’s too late. The full extent of the system’s corruption isn’t obvious until you need to file a claim—by then, you’re already trapped.
Alternatives are deliberately kept out of reach. Single-payer healthcare, fair insurance laws, and consumer protections are fought aggressively by the industry because they threaten profit margins.
Every time a proposal comes up to fix insurance, the industry pushes fear campaigns about “big government” and “socialism” to scare people into protecting a system that actively harms them.
Final Thoughts: The System Was Never Built for You
Insurance is not a safety net—it’s a financial trap. It exists to collect your money and minimize how much you ever get back.
People think of insurance as something that protects them, but in reality, it's a business that bets against them. The goal is never to help—it’s to extract wealth, exploit suffering, and maintain control.
Until the entire system is dismantled and rebuilt around actual human needs rather than corporate profits, the cycle will continue. People will keep paying into a system that will never be there for them when they actually need it.
Source List
Investopedia – How Insurance Companies Make Money
https://www.investopedia.com/ask/answers/052015/what-main-business-model-insurance-companies.aspLeMaster Law Firm – Profit Motives in Insurance Claim Denials
https://www.lemasterlawfirm.com/personal-injury/profit-motives-result-in-denials-and-low-payouts-from-insurance-companies-in-personal-injury-casesThe Guardian – How the U.S. Health Insurance System is Failing Patients
https://www.theguardian.com/us-news/2025/jan/26/us-health-insurance-system-doctorsFinancial Times – Why Home Insurance is Becoming Unaffordable
https://www.ft.com/content/cad09f5a-6386-4233-b963-a38f8148d566Vanity Fair – The Public Outrage Against Health Insurers
https://www.vanityfair.com/news/story/unitedhealthcare-ceos-killing-exposes-widespread-fury-at-a-broken-systemMarketWatch – The Hidden Costs of Insurance Denials
https://www.marketwatch.com/story/unitedhealthcare-execs-murder-exposes-a-deeper-problem-no-one-wants-to-faceRochester Beacon – The Case for Non-Profit Health Insurance
https://rochesterbeacon.com/2024/12/09/the-health-insurance-industry-ought-to-be-nonprofit
Insurance is not broken—it is working exactly as designed. And until people wake up to that reality, it will continue stealing from those who need it most.
