The probability should be given as 0.03 -- that might reduce your confusion!
Perhaps you should make this more clear in the calculator, to avoid people mistakenly making bad choices? (Or just change it to percent. Most people are more comfortable with percentages, and the % symbol will make it unambiguous.)
This (and much of the rest of your article) seems needlessly disdainful of people’s emotions.
Wealth does not equal happiness!
If it did, then yes, 899 < 900 so don’t buy the insurance. But in the real world, I think you’re doing normal humans a big disservice by pretending that we are all robots.
Even Mr. Spock would take human emotions into consideration when giving advice to a human.