Absolutely Wild And Bizarre Facts About The Insurance Industry We Never Knew Before
Most people have some kind of insurance, whether it's related to their health, car, or home. You might think that reading about insurance would be as interesting as watching paint dry, but there are actually some pretty interesting facts related to the topic.
For instance, there's a famous coffee chain that spends more money on health insurance than its frappuccinos. And we mustn't forget the deranged father who went to extreme measures to collect insurance money on Halloween. Read on for some fascinating facts about insurance.
The Apollo 11 Astronauts Couldn't Get Life Insurance, But They Had An Ingenious Idea
In 1969, one of the most dangerous jobs in the world was to fly to the moon. As such, the Apollo 11 astronauts had a tough time securing life insurance because they couldn't afford the premium. Still, they wanted to protect their families financially in case something happened to them in space.
The three astronauts put their official autographs on special envelopes called "covers" that were postmarked on significant days (July 16, 1969, the day of the launch, for example). They figured that if they died, the autographs would be worth a lot of money.
An Insurance Company Once Offered A Cash Prize To The Person Who Found The Loch Ness Monster
Back in 1971, whiskey manufacturer Cutty Sark offered a $2.4 million award to anyone who could capture the Loch Ness monster. Then the company backed out of its offer and asked insurance company Lloyds of London to underwrite the prize instead. The insurance company agreed as long as it could keep Nessie if the monster was found.
It's unclear why Cutty Sark thought someone may actually find the monster. Either way, it was a good publicity stunt that we're still talking about today. And it also proves that insurance companies do some wacky things.
At One Point, Starbucks Was Paying More For Health Insurance Than It Was For Coffee
In 2008, Starbucks CEO Howard Schultz encountered a pretty big problem with his company. It was opening too many stores and couldn't keep up with the growth. As a result, Starbucks had to cut $600 million in business costs, which involved layoffs and shutting down stores.
But one thing Schultz wouldn't do is drop employee health care, which cost $300 million. This amount was more than the company spent on coffee! Starbucks managed to make a successful turnaround, and its workers didn't lose their insurance.
Your Home Insurance May Provide Coverage For Meteor & Volcanic Damage
While home insurance policies don't protect against flooding, there's a good chance that it does cover damage from volcanoes and meteors. That's why it's important to thoroughly read your policy and consult with a professional to determine what is and isn't covered.
This will help you decide if you want to add anything such as earthquake coverage, which typically isn't included in most policies. However, earthquakes can strike in strange places, so it doesn't hurt to get that extra protection.
Insurance Goes Back Thousands Of Years
Experts believe that the first appearance of insurance in history occurred in China around 3000 B.C. Merchants were very concerned that they would lose their merchandise in shipwrecks because they transported a lot of their goods on vessels on various waterways. So, several merchants teamed up and distributed their goods over several ships.
This protected them in the event that one of the ships got destroyed. Each merchant would suffer a little, but no one would experience a complete loss. Today, money is collected and pooled together, and when it's needed, it is paid out in claims.
Thousands Of People Go Bankrupt Each Year Even If They Have Health Insurance
In the United States, thousands of people go bankrupt each year because they are unable to pay their bills. Many of these bankruptcies are caused by medical bills. Believe it or not, most of these people had health insurance but still went bankrupt.
Specifically, four out of five of these people had health insurance. However, they struggled to pay a variety of bills, including co-payments, deductibles, and other uncovered services. Another problem is that some people get so sick that they lose their jobs as well as their insurance.
Many Home Insurance Policies Prohibit Certain Breeds Of Dogs
If you have an Akita, Mastiff, Pit Bull, Alaskan Malamute, or a Rottweiler, you may have a tough time securing a home insurance policy. Oftentimes companies prohibit people from owning certain breeds of dogs because they are known for being more aggressive. For example, approximately 4.5 million people get bit by a dog each year, and about 20 percent of dog bites require medical assistance.
In 2017, homeowners reported $676 million in liability claims from dog bites and other dog-related incidents. However, people with at-risk breeds can shop around for extra coverage and policies that will cover their pets.
Japanese Life Insurance Pays Out Even If Someone Takes Their Own Life, Increasing The Number Of Deaths
Every year, thousands of people, mostly men, take their own lives in Japan. Life insurance policies there will pay out even in these circumstances. According to Ken Joseph from the Japan Helpline, elderly people with financial issues often see it as a way of getting out of their problems.
"The insurance system in Japan is very lax when it comes to paying out" for self-inflicted death, he explained.
Sony Makes More Money Selling Insurance Than Electronics
Most Americans recognize Sony for its variety of electronic devices, including the Sony PlayStation and Sony Walkman. And while it makes a lot of money with these types of items, the company truly earns profits through its insurance business. You can't get it in Europe or the United States, but it's widely available in Japan.
Sony sells life, auto, and medical insurance. In 2012, 63 percent of its operating profit came from insurance. The company actually made over $9 billion over the course of a decade from life insurance alone.
The Amish Don't Believe In Insurance & It Has To Do With The Bible
The Amish don't buy insurance because the "Bible teaches them that Christians should help take care of one another," according to Donald Kraybill, a professor at Elizabethtown College and an expert on Anabaptist groups. As a result, they pay for medical bills using their own money.
Families combine money to cover health care expenses. One way they raise the money is through public auctions where Amish and non-Amish people can purchase pies, farming equipment, livestock, etc. The Amish do pay taxes, but they are exempt from paying for and receiving social security.
Teen Boys (& Their Parents) Pay A Lot For Car Insurance
When your teen starts driving, expect to shell out a lot of money for car insurance. In fact, the rate can be as much as 227 percent higher when compared to an adult driver alone.
Teens who buy their own policies have to pay even more money. Drivers aged 16-19 are four times more likely to be involved in a collision than older drivers. As such, putting a 16-year-old on your policy can increase the rate significantly.
Aflac Insurance Has Been One Of The World's Most Ethical Companies For Over A Decade
Every year, the think tank group Ethisphere Institute compiles a list that ranks the most ethical companies in the world. Aflac has been named one of the World's Most Ethical Companies every year since 2007. Ethisphere focuses on business ethics, corporate social responsibility, anti-corruption, and sustainability.
"Aflac's commitment to serving the community with passion and compassion illustrates the core, fundamental spirit that drives our superior results, especially as the marketplace continues to demand ethical excellence from the business community," Aflac Chairman and CEO Dan Amos said.
Gene Simmons' Tongue Was Once Insured For $1 Million
Gene Simmons is the legendary frontman of KISS, and during the height of the band's popularity, the singer insured his tongue for $1 million. Simmons' tongue was very famous in those days because he would wiggle and waggle it during concerts, to the delight of fans.
Simmons insured it because if something ever happened to his tongue, it would have had a pretty big effect on his performances. We're not exactly sure what kind of trauma a tongue can experience except maybe getting a little burnt on a hot slice of pizza. Still, Simmons felt the policy was necessary.
American Insurance Companies Refuse To Underwrite Films Starring Jackie Chan
When martial arts action star Jackie Chan makes a movie, he personally pays for all the medical bills with his own money. This has to do with a variety of safety and insurance regulations that the movie studios put in place. One of the problems is that they require protective gear, which Chan says is "very frustrating."
However, things are different when he makes films in Hong Kong. "We just go ahead and do what needs to be done," Chan explained. "There is no safety captain on the set." He added that he uses his own experienced stunt team that he trusts to get the job done right.
Superstore & Ugly Betty Actress America Ferrera Insured Her Smile For $10 Million
Back in 2007, British insurance firm Lloyd's insured America Ferrera's smile for $10 million. The policy was made in conjunction with teeth-whitening product Aquafresh White Trays. It was part of a promotion to bring attention to the American charity Smiles for Success.
"It's very flattering to have my smile insured for $10 million, it’s not something that I ever imagined happening," Ferrara said at the time. “I’ll try my hardest to take care of it.” The policy covered the star's dental treatment costs and any accidental injury that may have occurred.
