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Chuks Udo Okonta
Many people believe they can manage their risks, hence don’t consider insurance in their financial plan.
This belief is known as self insurance. The concept of self insurance has led many people into poverty and even death as they were unable to rebound after great mishap.
Insurance has over the years remained one of the best means to manage, mitigate and secure the future. This is done through the principle of pooling funds – small premium, big coverage.
Dangers of self insurance
*Drain on personal savings
One of the essence of insurance is meeting needs of policyholders at the time of risks. Those without insurance have to fall back on their savings or investments to handle their risks.
* Financial indiscipline
Insurance encourages financial discipline as it helps to curtain frivolous spending. Funds which would have been mismanaged are appropriated into securing the future.
Insurance gives rest of mind, knowing that you have a helping hand in time of risk, gives inner peace and comfort. Those without insurance would always agitate when hit by mishap beyond their control.
Insurance begets protection. Those without insurance are exposed – see finish, when hit by risks. They run to family, friends and government in search of financial assistance.
Insurance is one of the best tools to break the chain of poverty. Mishap not insurance against can ruin a life or business, leading to poverty.
Don’t think you can manage risks alone, make that little financial contributions and join the league of other wise people, whose money would be used to save you in the time of mishap.
Self insurance is dangerous refrain from it and enjoy small premium, big coverage.