The idea of insurance is that you protect assets that would be a considerable burden on you if they were destroyed. If your home were to burn down and you did not have insurance, the financial burden would be enormous on you to rebuild your home. Not only is your home destroyed, but everything in it is also. Your financial burden would be terrible, but your emotional state would be a wreck.
Insurance is used for more than just your home, automobile and health. There are two huge losses that can also impact your livelihood: your life and your income. Everyone is aware of the old life insurance that pays when you die. If you have not heard of the new life insurance which you can use while you are still alive, then it might be time to revisit your portfolio.
The two most important aspect of your life that will have a huge impact on yourself and others are your life and your income. If a premature death happens, your loved ones could receive a death benefit (old insurance), but what if you don’t die a premature death and encounter an illness or disease? What impact would that have on your finances? How would a market loss impact your future? Would you have to wait to retire or maybe not retire at all? You only insure what you cannot afford to lose. Insure your loved ones from financial ruins.