Insurance is a vital financial focus in today’s complex world. Failure to have sufficient insurance is the quickest and easiest way to accrue mass debt. Nothing will make your business, car, house, family, or self more vulnerable or susceptible to financial strain than a lack of adequate insurance.
However, paying too much for insurance can be a financial strain in itself. And paying for insurance that is not needed is just money down the drain
People have a preconceived notion that insurance is a waste of money, something which is not necessary. This is not true! Almost everyone needs insurance.
How do you know? If you own anything which cannot be easily replaced without economic hardship, it should be insured. For eg
- If your house burned down, what would you do?
- If you lost your job due to disability, would there still be food on the table?
- In the worst case, would your family be provided for if you passed away?
These are tough scenarios to imagine, but they happen every day. It is important to understand the consequences, but it is more important to stay prepared. Some people tend to think of insurance as a luxury, which is not true at all.