Managing Every Day Risk

Question: Who doesn’t need to protect themselves from risk?

Answer: Someone with nothing worth losing.

Let’s not over complicate this. If losing something you have is going to make a big difference in your financial well being, you might want to consider buying insurance.

Some kinds of insurance, (yes, there are always exceptions) you must carry, such as auto liability insurance if you own a car.

Whether or not to buy other kinds of insurance depends on if there is a risk there worth paying to protect yourself from.

The question to ask is, can you and your family financially absorb: The loss of income due to death or disability? Catastrophic medical expenses? The destruction of your home? Legal liability?

Bottom Line

If you can’t afford to replace it, insure it.