Should I buy various kind of insurances?
Some people are quite confused what insurance they should and what they should ignore. Let’s know about it in detail.
Buy insurance only if you need
It’s true that it costs money to buy insurance, just like anything else, eat at a nice restaurant cost money, but some people pay because you enjoy it. A flat screen costs money, and some people have several at home.
From my point of view, we should not blindly buy any insurance, but buy the insurance only if needed.
What is our most important possession?
From my point of view, it all depends on our ability to generate revenue. If you lose t he ability to work, you can not survive, as well as your dependents. A good life insurance helps to cover both scenarios. You can protect against a total and permanent disability that prevents us from continuing working, and it can protect our dependents if some bad thing happens.
In this sense, I think it is important to have a good life insurance. Here we should note that there are many types of life insurance – some of the insurance companies are based on premium, others have a savings component, and several only offer us protection, but we do not generate any other benefits. The cost, of course, is very different. What is the best? Much depends on our needs – analyze goes far beyond the scope of this post.
What is the most valuable asset we have?
For many people, it is certainly home. Can you imagine running out of a place to live? Do you remember the 1985 earthquake in Mexico City, many people lost everything they had.
Some people prefer home insurance to car insurance. It is much more likely that someone could steal the car, or that one may suffer an accident. But the economic consequences are much worse if we managed to miss the place where we live. Precisely because the likelihood is much smaller, home insurance is usually much cheaper than the car.
Do not forget our legal responsibilities
If we cause an accident or hurt someone else, are responsible for compensating the damage (in addition to other possible consequences we face). If we can not afford the car insurance, we should at least acquire coverage for damage to third parties, because such liability may be much greater than the actual value of our vehicle. In the Federal District if the result of an unfortunate accident a person dies because of us, we must compensate their families. Can you imagine a case where there are several injured?
Buying insurance is simply a way to protect our heritage in this type of situations that can cause us a major economic damage. Of course, if you have no car then no need to buy car insurance. If where you live is not yours but rented, you have to ensure that you cover your responsibilities as a tenant. It is extremely cheap and does not represent a significant cost.
If you have family that is financially dependent on you, life insurance is not only essential, but it is an act of love. If you do not do that, you should consider if a disability that prevents you from working and generating income might make worse for you as well as for your dependents.
What insurance you should not buy?
There are many insurance companies that offer very little coverage. For example, one that compensates you if you assault out of the ATM. Not to say that will not serve, but will also protect you. if it happens, the economic loss is not comparable with that if you’d suffer a disability, or if it causes damage to someone else you must repair.
When buying insurance you should think about it. Protect yourself from what is really important. If you have a surplus at the end, you can decide if it is worth buying insurance for smaller events.