I voted Silas up as well because it’s an important point but it shouldn’t be taken as a general reason to buy as much insurance as possible (I doubt Silas intended it that way either). Jonathan_Graehl’s point that you should self-insure if you can afford to and only take insurance for risks you cannot afford to self-insure is probably the right balance.
Personally I don’t directly pay for any insurance. I live in Canada (universal health coverage) and have extended health insurance through work (much to my dismay I cannot decline it in favor of cash) which means I have far more health insurance than I would purchase with my own money. Given my aversion to paperwork I don’t even fully use what I have. I do not own a house or a car which are the other two areas arguably worth insuring. I don’t have dependents so have no need for life or disability coverage. All other forms of insurance fall into the ‘self-insure’ category for me given my relatively low risk aversion.
I voted Silas up as well because it’s an important point but it shouldn’t be taken as a general reason to buy as much insurance as possible (I doubt Silas intended it that way either). Jonathan_Graehl’s point that you should self-insure if you can afford to and only take insurance for risks you cannot afford to self-insure is probably the right balance.
Personally I don’t directly pay for any insurance. I live in Canada (universal health coverage) and have extended health insurance through work (much to my dismay I cannot decline it in favor of cash) which means I have far more health insurance than I would purchase with my own money. Given my aversion to paperwork I don’t even fully use what I have. I do not own a house or a car which are the other two areas arguably worth insuring. I don’t have dependents so have no need for life or disability coverage. All other forms of insurance fall into the ‘self-insure’ category for me given my relatively low risk aversion.