Insurance Agents, Consultation & Services @ Petaling Jaya
Whether ’tis nobler in the mind to suffer
The slings and arrows of outrageous fortune,
Or to take up arms against a sea of troubles,
And by opposing end them.
When the law, or a contract, compels us to buy
insurance, we have no choice about it, we just go
along. But did you know that insurance is actually
a smart bet against the uncertainties of life?
A simple way to understand the usefulness of
insurance is to consider this question:-
Which risk option would you choose between
the following 2 options? (choosing one will
exclude the other):-
The certainty of a very small loss now, which
you can afford to pay
The uncertainty of a very big loss in the future
which, if it happens, might cause serious financial
hardship, or even bankruptcy
If you want to “win” your bet, you have to be
unlucky enough to suffer a crisis first! If you
are lucky enough not to suffer a crisis, you
“lose” your bet! If you don’t bet at all, you
may save a little if you don’t encounter any
crisis, but if you have a major crisis, you could
get “wiped”. That is the “worst case” scenario.
Those are the strange paradoxes of insurance!
Facebook CEO, Mark Zuckerberg, said “the
biggest risk is not to take any risk”. Many
others have said something similar. (For
example, Shakespeare, in the quote above.)
Doing nothing can be a big risk. By taking the
right action, one can reduce significantly the risks
of inaction. In insurance the willingness to pay a
small cost now(i.e.the premium) can free you
from carrying big ticket expenses later, (as might
be triggered by some adverse event in your life, or
business), which, without insurance, could leave
you broke or ruined. Insurance helps you to
manage and survive crisis. It is a true friend
at the time of need.
Life without insurance could be a high stakes gamble!
Thanks for reading and sharing.