What is One Cost of Avoiding Insurance?

  • By: InsureJournal
  • Date: November 21, 2021
  • Reading Time: 2 min.

Imagine, you have saved money for a lot of years and finally launched your dream business. But you don’t have insurance as you consider it a luxury that too, unnecessary. Someday, a hurricane hits your area and all that investment in your business gets destroyed in a day. And to make it even worse, that you don’t have the remotest idea on how to get it all back again. But with insurance, you are protected from such uncertain situations as the insurance company gives you the money to recover from the damage. 

An insurance is a policy in the form of a contract, that provides financial protection to an individual or an organization and most importantly provides financial support to recover from the damage that can be caused by any form of accident.

Now you may ask about the purpose of insurance. Insurance comes with the purpose of giving reliability to the insured people and helping them avoid the burden of being afraid of uncertain circumstances. As the insurer or the insurance company provides the compensation, it enables an individual to protect himself and his family from unwanted financial fears & worries.

In this way, the individual or the organization is protected from accidental financial losses. Thus, insurance is there to ensure reliability and help to get rid of the fear of uncertainty. Essentially, if you are simply focusing on numbers but not the results, then you should not put yourself at risk of being uninsured and end up facing bigger bills during any disaster.

The cost of avoiding insurance

The cost of avoiding insurance

The numerical cost of avoiding insurance is the cost you pay for repairing the damages minus the cost for insurance as the premium. But it doesn’t end here.

There are much more issues you will have to face for avoiding insurance –

  • You will find yourself in debt whenever you face a major problem.
  • You won’t be able to get a low interest rate on a home loan or vehicle loan.
  • You and your company will be at a huge risk if faced with an accident.
  • You won’t enjoy benefits from insurance deductibles. 

Reasons why people avoid taking insurance

  1. Due to the belief that taking insurance is expensive. But people often forget the expenses they are risking if they face an accident.  
  2. You may have insurance with your employer to ensure your rights, but it will have a minimum coverage in case it is a group policy. Seeking individual insurance always results in the best benefits.
  3. The absurd idea among the youth that ‘ I am young and why should I worry about an insurance policy so early in my life? ‘. But even young people from all over the world today, suffer from cholesterol, blood pressure, and diabetes from their early 30’s. 

Considering everything that you are informed about, it is really up to you now to decide if an insurance policy is important for you or not. 

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