The Benefits and Downsides of Insurance in Financial Planning

Insurance is one of those things that can seem so easy to avoid. After all, if nothing bad happens, you are simply throwing money away. And even if something bad does happen, you’ve heard how difficult it can be to make a claim; it hardly seems worth it.

For some people, certain types of insurance may not actually be worth it. While for others, not buying specific insurance policies may be an enormous mistake. Some types of insurance, such as auto insurance or, in certain places, health insurance are required by law. But other kinds of insurance, home insurance or life insurance, for instance, are great for some people while terrible for others.

When looking at insurance, the more you have, the more you want to use insurance to protect it. For younger people just getting started in life, insurance is much less importance. While you will want to have health insurance, auto insurance if you have a car, and perhaps renter’s insurance if you are the sole renter of an apartment or house, that is the extent of the insurance you need.

For people who don’t have children or their own property, spending money on life insurance, for example, would be a huge waste. It is far better to use your extra cash to try to make more money, through binary option trading. With a broker such as Binary88 broker and a solid trading strategy you can earn hundreds of extra dollars a month with that money, instead of wasting it on useless insurance.

On the other hand, those people with families and homes should consider insurance more carefully. There is no harm in taking a few hundred dollars and trying to make some extra cash trading binary options, but the majority of that money would be far better served in insurance premiums. The more you have in terms of property the more important property insurance becomes. Likewise, the more people who depend on you for income the more important life insurance becomes.

There is of course no one answer for everyone. Some people with dependants will find insurance irrelevant, while some young people will find that life insurance is vitally important to their lives. Don’t just do something because you should, do it because it’s the best for you.

Did you like this? Share it:

Comments are closed.