YES! we all need insurance.
Investments and savings alone are not sufficient to achieve financial freedom, insuring your life and assets are equally important. Insurance is a risk transfer mechanism. When you buy insurance, you have transferred your potential risk to the insurance company/insurer. If you have a spouse, parent, or child depending on you it is important to have insurance for your family to fall back on in the event of injury, illness, loss of job, death, or disability.
Here are some important reasons you need insurance;
- Peace of Mind: If you need peace of mind and not worry about unforeseen circumstances, you need to insure your assets/properties and your life. Insurance offers you financial protection against the possibility of a loss. The financial loss associated with being involved in an accident and damaging your vehicle or that of another, getting injured or injuring a third party or property is transferred to the insurer.
- Financial security: ‘no matter how much you are earning or how much you have saved; your financial position can be dented by an unexpected event in a moment’ – the financial stress you’ll face when you lose a parent, an in-law, or your house in a fire is transferred to the insurance company. Insurance reduces the financial burden you would have faced if you didn’t have insurance cover. One will not have to borrow to pay for expenses related to funerals and fires if you have insurance cover.
- Keeps Businesses Going – One fire or lawsuit is enough to wipe away an entire business. In the absence of insurance, businesses will have to set aside monies for eventualities such as fires, theft, etc. Insurance types available to businesses include property insurance, professional liability insurance, workers compensation insurance, vehicle insurance, product liability insurance among many others to protect them and keep business going.
“Nothing is more important than your life and your ability to make a living. So, it makes good sense to insure your greatest asset – you!”
Thank you for reading!