An Ounce of Prevention

Answer 1

Too often in society today, people tend to cut back on the wrong things when they're looking for things to cut inside of their budget. Insurance is usually one of the first things on the chopping block, even though there is no way that it should be. Everyone, from individuals to people with families, should have insurance on their car, on their person, on their health, on their large assets, and on their business in the form of unemployment insurance and disability insurance. All of these things can be covered under certain types of general insurance plans, and these types of general insurance plans are usually much more cheap than buying each individual type of insurance.

There are certain types of general insurance companies which specialize in this type of insurance, and people who are trying to cut back or look for cheaper insurance should definitely seek out these types of programs so that they can maintain their protection against emergency events without having to break the bank and go over the monthly budget. However, no matter what, people should remember that the reason that insurance companies are among the most profitable companies in the world is because they pay close attention to the mathematical probabilities that things may happen that are bad. People tend to think they can beat these odds, but this is why the insurance companies are very well to do with plenty of money, and many people are sitting in the hospital or unemployed, with a broken financial structure, because they did not have the wherewithal to use the same mathematical probability models as the insurance companies and keep their insurance.

Is definitely not in your best interest to worry about the ins and outs of the probability models that the insurance companies literally use. However, it is in your best interest to realize that the economic fallout of one emergency that can bankrupt you is well worth the extra effort to maintain that line item in your monthly budget. If you must cut back, cut back on other things in your budget, but not on the insurance that you have for yourself or your family.