Only Take Small Risks

If you want to succeed with all types of insurance including life insurance, then you should only be willing to take the risks that you can afford to lose. Only take the risks that are worth taking, and you should insure the rest. For example, it would cost you hundreds of thousands of dollars to rebuild a home you own from scratch should a natural disaster destroy it. You would not be willing to take the risk for this event. The likelihood of the destruction happening may be very small, but it would be devastating if it did happen. It could financially ruin you and cost a fortune. It would absolutely ruin most people, in fact. It is simply not a risk worth taking. That is why we insure against that risk to protect ourselves, our family, and our future income stream.

In most cases, it is not worth the risk to go without insurance coverage. The same is true with life insurance. If you did not have a large, adequate amount in an emergency fund, a family would not survive long without the breadwinner of the family’s income. A majority of families in America live paycheck to paycheck with very little savings. Any disruption in the family’s typical source of income could have devastating consequences. That is the main function of life insurance, to protect a family’s income stream when they depend on that income to live and survive. It is not worth the risk of failing to carry life insurance if your family depends on your income. You need life insurance.