March 12, 2008

Insurance is a good thing!

For anyone who starts earning, investing some part of the income is very important.

Investment can take several forms, and one of these forms is insurance. Though, strictly speaking, insurance is not a form of investment, but a way by which one prepares himself, and his loved ones, for the worst case scenario.

These days one can get an insurance for almost anything. Ranging from life, health, property... you name it and there is an insurance for it. There are times when we feel that insurance is a nuisance. For example, getting an car insurance is legally binding in most countries, and if your insurance has expired, more likely than not, you will get a ticket.

At these times one feels that it is my car, and if I haven't taken an insurance for it, it is my problem. If something happens I will pay for it. But, when that something does happen, one can not be thankful enough for the insurance.

Some time back, a friend of mine had a major accident. His car collided with another car, and both cars were severely damaged. Since it was no one's fault, damages were paid by neither side. But, still the car had to be repaired, and that involved a major expenditure. But the friend's Car Insurance company settled the claims and most of the money spent by him was reimbursed.

When someone is involved in an accident, he is already under a lot of stress, and it is only good that under the circumstance he has one less thing to worry about.

What is your take on insurance?


stev said...

as long as you know why you are buying the insurance & if you need the coverage (especially more so if you have dependents)

then yes

by large =)

Paros Shepherd said...

In my experience it has mostly been a waste. I would have been far better off to put the same amount of money in a savings account.

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