What Are The Differences Between Insurance And Gambling?

Well insurance is a bit like gambling... You're gambling a small amount of money in case something bad happens you won't be out of a lot of money, and the insurance company is betting that nothing bad will happen and therefore they make a lot of money based on the number of people insured vs. The number of claims.

Gambling on the other hand is wagering a sum of money, hoping for a payoff of a larger sum of money. All you have to lose is whatever you are wagering. With insurance, the payout can mean the difference of being left homeless or having the means to start over.  

They are both betting games, but usually in regular gambling unless someone is a complete idiot and wagers everything they own, they aren't going to lose everything they own, but with a fire, flood or other natural disaster, someone's whole life can be wiped away in a matter of moments with no means to recover.

Between the two, I'd use my money for insurance. I've had a home fire. I've never won a lottery. Remember, those big casinos and hotels weren't built on winners !

With gambling you are usually betting you will win. With insurance you usually are betting that you will loose. Get it?