The main reason why one should buy insurance is to protect you and your loved ones from any catastrophic financial losses as a result of any unforeseen mishap or circumstances that may arise. How about considering the situations below ?
You are driving a car on the highway and you crashed into the back of the car in front. It turns out that the repair cost of the car in front is significant and you are deemed to be liable for it. Do you have the money to pay for the damages ?
You are the sole breadwinner of the family and due to some unforeseen mishap, you passed away. Will your family's quality of living change if no one in the family is able to replace your income ?
As such, do keep in mind the reason on why you are buying insurance. And if you keep it in mind, you should always consider the amount of coverage you are getting and getting a sufficient amount of coverage. Don't think of insurance as a form of investment where you are supposed to get some profits back at the end of the day. Consider it as a small amount of expenses that will hedge any unforeseen huge financial losses arising from unforeseen circumstances. In fact, you should separate your insurance needs from your investment goals.
As such, do keep in mind the reason on why you are buying insurance. And if you keep it in mind, you should always consider the amount of coverage you are getting and getting a sufficient amount of coverage. Don't think of insurance as a form of investment where you are supposed to get some profits back at the end of the day. Consider it as a small amount of expenses that will hedge any unforeseen huge financial losses arising from unforeseen circumstances. In fact, you should separate your insurance needs from your investment goals.
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