> With this in mind insurance is a service worth paying for as long as the fee is lower than utility you gain from it.
Why even consider the insurance as investment (money increasing tool)? A stock market would get you higher gains at more controlled risk.
The 3rd best financial advice I got is about insurances: "Pay the insurance only if the negative outcome would cause you a significant financial loss" (and is of relatively high probability)
So, insuring a house from fire etc. makes sense. But, my $2k bike is not worth covering (from my PoV). Or, if we go to extreme, my (unnecessary) motorbike/boat/jet ski as if they are destroyed, I can continue living without them (a bit of exaggerated example, but I hope you get my point). Same for insuring a house from unlikely events.
Why even consider the insurance as investment (money increasing tool)? A stock market would get you higher gains at more controlled risk.
The 3rd best financial advice I got is about insurances: "Pay the insurance only if the negative outcome would cause you a significant financial loss" (and is of relatively high probability)
So, insuring a house from fire etc. makes sense. But, my $2k bike is not worth covering (from my PoV). Or, if we go to extreme, my (unnecessary) motorbike/boat/jet ski as if they are destroyed, I can continue living without them (a bit of exaggerated example, but I hope you get my point). Same for insuring a house from unlikely events.