Aug

23

yet another post about insurance

Filed Under insurance 

So I was talking to my fellow m-network members about insurance and I explained my foolproof method for determining whether you need a certain type of insurance. The key thing is not just how likely the bad thing is to happen, but the impact that it will have.

Its not the risk of dying that’s the variable as to whether you should have life insurance, its the risk x outcome that you need to consider.

e.g. the risk of me dying is negligible, the (financial) effects of me dying are negligible
negligible x negligible = low so don’t bother with life insurance plonkee

but

the risk of me become disabled is low, the (financial) effects of me becoming disables are catastrophic
low x catastrophic = high so get disability insurance plonkee

So there you have it. The perfect way to decide whether you need insurance.

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Comments

2 Responses to “yet another post about insurance”

  1. glblguy on August 23rd, 2007 7:51 pm

    As I said in the M-Network forums, great way to look at and a great tool for helping people make decisions.

    Thanks for sharing…and see I didn’t steal it;-)

  2. Travel Insurance Quotes on December 10th, 2007 12:23 pm

    excellent post - very informative, post more articles related to m-network please - thanks

2 pings

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