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Back up plan

on Sun, 06/08/2014 - 08:45

**I was writing this bost post in the morning and was shot to see this tweet from @680news :(

If you are a healthy person in general, you might not think of insurance unless you drive or you own your property. We buy auto insurance because it is the law to have that coverage; we buy home insurance, mostly, because we have a mortgage and the lender requires us to get that coverage. Imagine if you don't HAVE to buy those coverage. Other than "oh yeah, we save lots of money", have you thought of what would happened should you get into an accident and hit someone?

A real life experience: my sister got hit by a car when she was around 17. It has been over 30 years she awoke from a coma but then it left her disabled for life. Can you imagine if the driver who hit her didn't have coverage? He would have responsible for the rest of her life! That's one dependent (for life) on top on whatever expenses and obligations he has already. Can you imagine if that was you?! You definitely don't want to expouse yourself to that kind of risk.

In home insurance's case, should your lender not require you to have the coverage, and you didn't buy it. You then take all the risk should any theft happens, any fire happens, pipe burst or anything. Some people said they have never claimed, why bother... what they can't see is that fact that: insurance is not something intended to be used, it is a back up plan.

There are many "what if"s in life, we have back up plans on many things, why would you not have any back up plans in life?! We will look at that in my next blog.

Disclaimer: TruFinancial Consultants do not deal with home, auto or professional/business insurance, we refer our clients to responsible agents and brokers for that. 

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