Insurance and Risk Tolerance

In everyone's life, there will come a time when things do not turn out as planned and unfortunate things happen. This is normal, but most people are not fully prepared for this occurrence. To be truly financially free, insurance needs to be rock solid in all areas of life.

To understand the topic, one must first understand that insurance is a way to hedge against huge financial losses when something goes bad in life. By having periodic payments, you are paying for the ability to call on the insurance company to assist you when bad things happen and the cost is extremely high. There are many forms of insurance, and choosing each one is completely dependent on the lifestyle that you lead.

Some of the many types of insurance are health, car, life, homeowners, umbrella, and even pet insurance. Selecting these things is based on your risk tolerance and how you live your life, so you must evaluate this before doing anything. If you do this properly, you will be less worried about bad things happening and have the ability to be more free with your money. At the end of the day, it all comes down to making your money work for you and having less stress because of it. Insurance is one way to help you do this.