brazil84 comments on Really Extreme Altruism - Less Wrong
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I agree, I don't think it's a con. It only seems like a con because you are betting with the insurance company about the contents of your brain and most people naturally assume that they understand the contents of their own brain better than some outside agency.
However, I think that assumption is pretty clearly false. It seems that institutions have the benefit of a lot of past experience and can use that experience to understand people better (and predict their behavior better) than they understand or could predict themselves.