Looking back through the archives yesterday, I realized that I haven’t done a reader post in a while, so I thought long and hard and came up with what I think is a great topic for some reader input.
Given the choice, would you contribute more of your financial resources toward more, better, or expanded insurance products, or would you stash away the money and “insure yourself?”
Why It’s Controversial and Important
Whenever insurance comes up in circles of friends of family, it’s a hot button for defending one side or the other.
Some people believe that insurance is a fantastic concept and will protect them if disaster strikes. While they may have a good deal of savings, they rely on insurance to protect those savings and any shortfalls that may occur if something were to happen. They would happily upgrade to other forms of insurance or raise their coverages…
Others believe that while the concept is good, insurance companies are simply a bunch of crooks out to get our money and avoid covering us in a catastrophe anyway. So they stop wasting money and just save it all themselves, with the hope that they will have enough should anything happen…
What We Already Know
Yes, we already know that this is not a black and white question and requires some degree of balance.
Some insurance is pretty good to have, and even required by law (such as automobile insurance). So you can’t get away with just saving…
And we also know that if you just save your money, a catastrophic event still has the potential to wipe you out…so simply stashing your money is not usually the answer.
But we also know that in our budgets, we have a good degree of choice – play room in what gets prioritized and what gets sidelined.
So – given the choice, would you rather save more or insure more?
…Pour Your Heart Out
Here’s your chance to chime in and see what others think – leave a comment below with your advice, thought, or question!
The best comments will be featured in a follow-up post.