Pooling Risks for a Secure Future

You can make your financial future more predictable just by grouping up with others,

and it's all thanks to a simple math concept called pooling. Imagine you have a small chance of

a big, scary $10,000 loss. The risk feels huge. But if you and a friend agree to

pool your money and split any losses that either of you have, your personal risk

profile changes. As you add more and more people to this pool, the Law of Large

Numbers kicks in. The average loss per person stays the same, but the individual

risk—the wild unpredictability—plummets. This is the exact principle insurance companies use. They're just pooling

thousands of people's risks to make huge, uncertain losses manageable for everyone.