Insurance: Not for dummies!

Why do we need insurance?

Sometimes we buy because it is required by local legislature. Sometimes we buy because we believe our alternatives are unacceptable. Before taking a big step into purchasing insurance, one would have to balance the potential cost of surviving an uninsured risk against the known cost of insurance for that risk.

For example, if your house is paid for and there is no lender who requires fire insurance, if the house burns down, you're really hurting. The cost of fire insurance is probably a small fraction of the value of the house. This applies to catastrophic health insurance and even business insurance.

Thus, protect yourself and your loved ones, make the right decision!