Most people subscribe to the idea that going in for insurance is simply a waste of money. They think that playing the stock markets instead is a better option that fetches them immediate returns. See, you may be having your own opinion in the matter, but every decision that you make in the matter of financial investment involves some risk.
It will help you to change some of your extreme opinions if you simply consider insurance as a form of hedging monetary risk against the premise of an accidental event making your or your family's life extremely difficult to sustain. Seen against the premise of a certain accidental event turning out to torment you or your family for the rest of your life, getting insurance for yourself and your family members provides monetary support for you or your family against such an eventuality turning out to be true.
Even with such an explanation most people are not satisfied with investing their money into getting insurance, because they think that since nothing untoward has yet happened in their or their family's life, nothing like it ever will. Most people tend to incorrectly think that the bad events always happen in other people's lives. This thinking is only wishful and subjective, for the chance of an accident happening cannot always be discounted in the case of any one individual out of the total population.
Okay, you are right that till nothing untoward happens in your life, your investment into the insurance sector does not provide you adequate returns. However, think in the opposite direction. Think of the case, when not having any or even adequate insurance has brought a family to its knees simply because an accidental event has rendered their life fraught with insurmountable financial difficulties for the rest of their painful existence on this planet.
Do you think that all your investments into the share markets always provide you with adequate returns without any risks? No, the answer is absolutely not. Similar is the case with your investments in the insurance sector. The advantage in investing adequately in the insurance sector is that you at least have a monetary hedge against an untoward incident. You cannot have such a hedge in share market investments as in that case every such investment is purely speculative in nature.
However, the only two questions that then remain to be answered are how much and in what sectors of insurance you should invest in and what risks you should actually safeguard against. That question is one which needs to be answered by each individual separately. The reason for this is that each different individual's needs are different, his situation is different, and also the risks that pervade his life are all different.
It will help you to change some of your extreme opinions if you simply consider insurance as a form of hedging monetary risk against the premise of an accidental event making your or your family's life extremely difficult to sustain. Seen against the premise of a certain accidental event turning out to torment you or your family for the rest of your life, getting insurance for yourself and your family members provides monetary support for you or your family against such an eventuality turning out to be true.
Even with such an explanation most people are not satisfied with investing their money into getting insurance, because they think that since nothing untoward has yet happened in their or their family's life, nothing like it ever will. Most people tend to incorrectly think that the bad events always happen in other people's lives. This thinking is only wishful and subjective, for the chance of an accident happening cannot always be discounted in the case of any one individual out of the total population.
Okay, you are right that till nothing untoward happens in your life, your investment into the insurance sector does not provide you adequate returns. However, think in the opposite direction. Think of the case, when not having any or even adequate insurance has brought a family to its knees simply because an accidental event has rendered their life fraught with insurmountable financial difficulties for the rest of their painful existence on this planet.
Do you think that all your investments into the share markets always provide you with adequate returns without any risks? No, the answer is absolutely not. Similar is the case with your investments in the insurance sector. The advantage in investing adequately in the insurance sector is that you at least have a monetary hedge against an untoward incident. You cannot have such a hedge in share market investments as in that case every such investment is purely speculative in nature.
However, the only two questions that then remain to be answered are how much and in what sectors of insurance you should invest in and what risks you should actually safeguard against. That question is one which needs to be answered by each individual separately. The reason for this is that each different individual's needs are different, his situation is different, and also the risks that pervade his life are all different.