Insurance is for assets. Not liabilities.
Many of us purchase mortgage and credit card insurance. Insurance is for assets – not liabilities. Financial institutions seem to enjoy selling us “extra” protection. But we’re really paying so that they are protected from us. Which is weird. And yet another reason to split up your financial affairs. Have a banker and a mortgage broker and an insurance broker and a wealth manager – just have them all working in different buildings for different companies.
What’s next? Friend insurance. Oh I’ll be your friend alright – just sign this here insurance policy so if something happens to you and I don’t want to be your friend anymore, my loss will be covered. Not friendly dudes.