Deciding Whether to Bother With Insurance

Insurance can be a lot of money and if you are already struggling financially, then it can be tempting not to have any. Some people have the cheapest insurance, some have the minimum and others do not bother. It is worth considering the consequences of this though.

You will find that if you have a mortgage then your mortgage company will insist that you have life assurance and buildings insurance. You will also be legally required to have car insurance if you drive. With paying out all of this already you may decide that you do not want any more insurance or if you have no mortgage you may decide not to bother with the life or buildings insurance.

It is important to think about the purpose of insurance. It is there to give your peace of mind. If anything happens then it will pay out the help you. For example, if your house burns down, then you will be able to get the insurance to pay out to rebuild it and pay to replace the contents. This is something that you are unlikely to be able to afford to do yourself. Life insurance will pay out to help your loved ones cover costs after you have gone.

Bother With Insurance
Although the monthly cost of the insurance can be a burden, you have to consider the consequences of having it. Some people will still think that it is not worth it. It will depend on whether you have dependents who would benefit from a pay-out for one thing and whether you could afford to replace something that is stolen or damaged. You may decide that mobile phone insurance is not worth it, but perhaps that buildings insurance is as you could afford to replace a phone, but not a house.

You may also feel much safer knowing that you have insurance. Knowing that if something happens that you will get some money to help can give you peace of mind, especially if you do have a family to think about. Protecting against a risk is always a gamble as you never know whether you will use it or not, but it can help you to feel more relaxed and that can be worth a lot.

You need to calculate whether you can afford to be without the insurance really. Think about the cost of not having it and whether it is best to have it or not. It is hard to predict the future but you need to consider what the risk might be and whether you think it is worth insuring against.