Is Insurance worth it?

"Are you insured?"

“Are you insured?”, asks a TV advertisement lately. I asked myself, “Do I need this one?”. The answer to whether or not an Insurance is worth buying is “It depends”. Going on a case by case basis saves a lot of money and trouble. In this article, I talk about various insurance and how it works, and what might be actually life-saving stuff, and what you might not need at all. If you’re looking for a minimalist lifestyle, here is another article by me.

What is Insurance?

A formal definition by Wikipedia is here. For me, it is something that protects you from potential losses that would be much more bigger if you do not transfer your risk to some third-party. Yes, it is all about risk transfer.


To transfer risk means to let someone be somehow responsible for your actions or some unforeseen accidents. For example, if you want to keep your Office safe from a lot of financial damages by unforeseen circumstances like vandalism or robbery, chances are that you have to pay some price for it per month to a third-party who assures you of helping to cope with the damages from such events.

When nothing happens, the money you paid them as “premium” is gone, you’re ain’t getting it back! here’s the game, when you insure your company for up to 10 million dollars, and someone breaks your supercomputer inside your company while theft or vandalism, you would be a lot more in advantage because of insurance. This is in case you do not have data losses, imagine you being a bank and losing customer data. This can cost you a lot more than anything.

Two Types of Insurance

We transfer risks associated with our lives or our business. So there are two kinds of insurance, one that deals with life and one that deals with everything else. Life insurance and health insurance are basic needs, this is what I believe. State-Sponsored health insurance saves a lot of lives by design although it is entirely a different matter when it comes to evaluating a country’s healthcare policies. For example, one of my Linkedin connections has been promoting a petition.

It is quite common in the European Union to see different healthcare insurance in place. As a student in Germany, I had to pay some money for health insurance too. In my country Nepal, not everyone has to have it. It is our own choice about whether to buy the service or not. Big businesses do have a good risk-transferring mechanism placed in their operations as they can’t risk a lot of damage to the organization, and is above a single person’s choice or desire. By asking every citizen to pay for the health benefits they would receive from policies in healthcare, a lot of money is collected every month by big countries like Germany. The transfer of risk is wise, as there are more cases of illness than more severe cases in any country.

Profit model?

Insurance companies profit as described in this article. The question is if you actually need it? For example, I was forced by the German Embassy to submit an Insurance Payment Report to be able to apply for a student visa as far as I remember. When I went to Germany, the insurance expired in just 2 days, I paid 80 Euros. The chances of a flight coming down are really low than a bus or a train accident. Hence, flight insurance companies make a lot of money. I saw no immediate to make that insurance, although just in case if anything bad happened that one loses his life, then his family gets a compensation cheque on whatever be the cause of the accident?

Think again if you need some insurance policy!

If you’re a 40-year-old guy with a 15-year-old son, you would require to fill a larger premium than your son. It is because you are in the ‘not-so-profitable’ zone for insurance companies as 40-years-olds are usually in more health trouble than 15-year-olds. If you analyze the pattern, 60 years will have to fill a lot of premiums than 20-year-olds.

Here are some key takeaways

  1. If you are looking for health insurance, you should do it because it is a good investment. Even if you paid $ 100 a month for insurance, it would save you from thousands of dollars medical bills in accidents.
  2. If you are a business owner, it is always advisable to get insured.
  3. For tourists, insuring their important electronic goods like Laptops, mobiles are advisable. Data can’t be insured, unfortunately, but can be backed-up by a custodian.

In my next article on Insurance, I’ll explain how insurance is a broken business, and so are banks, and their Anti-Money-Laundering policies. Stay tuned! If you want to discuss world-issues, we have a Telegram group at





Please enter your comment!
Please enter your name here