Chapter 7, Question 5

When I began to read the insuring against risk, imminently it brought me back to a conversation that I had had with some girls on my cross country team about Taylor Swift, and how she had gotten her legs insured for $40 million. We were talking about how ridiculous that was, and if music production is her business, then why does it matter if her legs are both broken? She can still sing right? I liked what it said in the book, as humans, we are irrational and "You are not worried about the average outcomes; you are worried about the worst things that could possibly happen to you." I think is a way this line is true. Because we think the worst, we will be willing to pay more. This shows how much human emotion can come into play and draw out our irrational side. Then the passage went on to talk about how pretty much anything could be insured from pirates to terrorism to clothing and shoe company on a person, and this brought me back to Taylor's $40 million legs. She must really be expecting the worse.