Whether You Really need an Insurance Policy?

Have you ever thought why we invest in insurance policies? Let us analyze each type of insurance policy one by one.

Life Insurance:

I pay a premium of $192.00 per month towards my life insurance policy which covers me for $250000.00. That means I will pay 192X12X40=$92160 in 40 years. If you invest $192.00 per month in bonds (The most secure type of investment) and be disciplined to pay regularly, I am sure you can earn $250000 in 10 years. According to me, insurance agents are experts in creating imaginative fear in your mind to grab a lucrative commission for themselves on your sale. I understand that life is predictive but that way everything in the world is unpredictable. During earth quake in Christ Church, so many insurance companies, went broke and were unable to make the payments. Considering the probability of dieing, I very strongly recommend that Life insurance is not required.

Medical Insurance:

Whether you opt for medical insurance or not, depends on the country you are living. If you are living in USA, it is a must. If you are living in India where, there is a massive difference between government hospitals and private hospitals as far as standard of medical practices are concerned, there also it is a must. But the countries where tax payers money is spent properly like Scandinavian countries, New Zealand etc. it is recommended that you go for medical insurance but it is definitely not a necessity. 

Vehicle Insurance:

This is one insurance policy that I recommend everybody to have. Life is too unpredictable on roads, and going with the probability of accidents, It really makes sense to strictly have vehicle insurance policy. If you are driving an old cheap car and not bothered if the car is damaged, you may at least go for third party insurance, so that you do not have to pay large sum if you hit some body's Ferrari. Remember, even if you consider yourself to be super expert, anybody can make mistake on a bad day.

Travel Insurance:

This is the most absurd insurance I consider. Even if something happens, as per my experience all insurance companies ask for so many documents as a proof of the incident, that it becomes impossible to claim an insurance. Once, I missed my flight as my father expired when I was coming back. The insurance company first asked for the death certificate which I provided, but to my surprise after receiving the death certificate, they asked me to prove that my father was not suffering from any decease before I made my travel plan. Now imagine, I just visited India and I do not have many contacts there, now I am back in New Zealand, How am I supposed to get these documents.