If something were to happen to you tomorrow, are you insured? If so, for how much?
One of the biggest expenses that each one has—as well as their biggest assets—is their house. It is probably the most expensive thing you will ever buy, and the thing that you will pay on the longest.
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When you think of Capitalism, what do you think? For me, I tend to think of the process of people making money, or entrepreneurship. I think of stocks, bonds, and investments.
I usually don’t think of bankruptcy and businesses closing.
But that is actually part and parcel of capitalism. Those that take the greatest risk have the greatest opportunity for reward, but they have the greatest opportunity for failure as well.
One of the most tragic things about the fire that consumed my church friend’s house was the fact that they did not have rental insurance. What we found out only later was that a family member had encouraged them to get the insurance before they took a trip overseas shortly before the accident!
House insurance was mandatory with the mortgage we got with our current house. We went with a family friend and, when you think about how much it insures, the little that you pay per year is amazing for what it can do in the case of a fire or other catastrophic event.
But just because it seems cheap when compared to other kinds of insurance (read car, life, etc.), that doesn’t mean that there aren’t deals to be had.
As many of you know, I am credit card free. There are many reasons why you too should go this way. I know that many of you keep credit cards for emergencies– and that is exactly the time that you should not use a credit card.
One of the ways that credit companies attempt to convince you of the security of your credit card is that you can pay extra each month for insurance in case you cannot make the payments. It’s a great promise, with a high fee.
Except that payment protection insurance is failing many that need it most: it’s actually adding to their debts instead of helping them during the hard times.
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