Creation of a Higher Standard of Living for the Same Cost to Taxpayers with Economic Impact
- Ownership and Control
- A captive insurance company is owned and controlled by its members. This means the people who pay into it (workers, employers, or communities) also gain directly from it.
- Social Security and Medicare are government-run programs. Politicians and bureaucrats decide the rules, benefits, and changes. They often make these decisions without direct feedback from the people funding them.
- Transparency and Accountability
- Captive insurance operates under clear, private-sector accounting rules, with regular audits and member oversight. That keeps the money where it belongs: with the people.
- Social Security and Medicare funds are regularly raided or misused, with trust funds filled with IOU, not real assets. There’s no direct recourse for taxpayers when funds run dry or benefits shrink.
- Customization of Benefits
- Captive insurers can design benefits to meet the specific needs of members. These include long-term care, disability, retirement income, or medical treatment. It’s flexible, innovative, and personalized.
- Medicare and Social Security are one-size-fits-all systems, with slow adaptation to changing demographics, technology, or healthcare innovations.
- Wealth Creation vs. Wealth Transfer
- With a captive model, people’s contributions can be invested to grow. This builds individual or group wealth over time. It is akin to a pension or 401(k), but involves pooled risk and shared gains.
- Social Security is pure wealth transfer: today’s workers’ pay for today’s retirees. There’s no personal ownership or compounding growth—just a promise, and sometimes that promise gets cut.
- Efficiency and Cost
- Captive insurance has lower overhead because it eliminates unnecessary bureaucracy and middlemen. Savings go back to the members.
- Social Security and Medicare are plagued by federal waste, fraud, and administrative bloat, costing billions annually in mismanagement.
- Incentivizing Responsibility
- Captive models can be structured to reward healthy behavior, responsible financial planning, and community involvement.
- Government systems often disincentivize savings or personal health improvement. This is because benefits are tied to fixed eligibility rules. They do not factor in personal responsibility or outcomes.
- Portability and Intergenerational Fairness
- Captive insurance can be made portable. It follows people through job changes or retirement. It can even pass on unused benefits to heirs or communities.
- Social Security and Medicare do not build legacy value. After you pass away, your contributions vanish. Younger generations are left holding the bag.
Sincerely
Robert Wilson
631-819-8252
