Why do people pay for insurance? If they have the money to ensure protection in the case of damage or loss that isn’t guaranteed, why not save the money for when something actually happens?
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Another thing to consider is what insurance allows you to do that you otherwise wouldn’t.
Say you run a business but insurance doesn’t exist so you need to set aside money every month and keep it as a contingency fund.
That money is sitting doing nothing until something goes wrong – that’s a chunk of money that could be spent growing your business by hiring new people, buying better equipment, advertising, etc.
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