Earlier quoted context omitted.
> So how is that different from hedging your bets? Correct me if I’m wrong, but I think the difference is, no one is betting that you actually do have an unforeseen incident, so there is no bet to hedge against.
> I think the difference is, no one is betting that you actually do have an unforeseen incident, You are. When you buy insurance, you are betting that you will have an unforeseen incident and will utilize your insurance. The fact that you are doing so to offset some financial risk doesn't change the fact that you are gambling. I don't see why source of a risk matters here. I believe the position I am arguing against…
Almost, but I don't feel like this is 100% accurate, because neither involved party wants an unforeseen incident to occur - the 'win' situation, if you could call it that, is the same for both parties. I can sort of see the argument that you are betting you "won't win", but I can't see it as gambling behavior:
> I don't see why source of a risk matters here.
Gambling implies taking a risk for possible gain, no? To me, part of the difference is that the risk/chance involved (life) is not intrinsic to the transaction - it is more or less known what your returns will be, and under what conditions. Contrast this to, say, a slot machine, where the 'win' conditions are owned by the house and unbeknownst to you. There is no situation where you can know you will be paid out for any given parameters.
What about flight insurance? Is that a gamble because no one knows if you'll make your flight? Are you betting that you won't make your flight because you purchased it, or are you paying for a conditional service?
(mostly not serious) aside: if what you posit is true, is the peace of mind one gains from having insurance akin to gambling addiction?