All-or-nothing events feel riskier because they indicate a greater chance of catastrophe. A 5% chance of losing your house to a local fire is much better than a 5% chance of losing your house to a city-destroying conflagration. Life insurance claims come steadily; flood insurance claims do not.
All-or-nothing events feel riskier because they indicate a greater chance of catastrophe. A 5% chance of losing your house to a local fire is much better than a 5% chance of losing your house to a city-destroying conflagration. Life insurance claims come steadily; flood insurance claims do not.