We insure everything we hold value to. Our homes, our health and even sometimes our pets and jewelry. If it has a value on it: we insure it. Why? Because we do not want to have a large financial expense if something were to go wrong.
Now, here are the facts and the odds per year of each on the above events happening to you inside a given year:
- 0.9% chance of loss of life – life insurance protects this.
- 1.2% chance of loss of car – auto insurance protects this.
- 1.3% chance of loss of home – homeowners insurance protects this.
- 28% CHANCE LOSS OF STOCK MARKET VALUE IN YOUR RETIREMENT PORTFOLIO