Insurance is a topic that has been discussed many times before. Let’s look at it from a different perspective. I often encounter the question of whether insurance is really necessary. The most common argument against insurance is that if nothing happens, the payments are wasted. But what if something does happen? What then, without insurance protection?

Personally, I approach insurance the same way I think about a first-aid kit in a car. It’s better to have it and never use it than not have it and need it one day. You have to buy a first-aid kit and regularly replace it because of expiration dates. You don’t want to find out during an accident that you don’t have one and can’t treat an injured person. Insurance works in the same way.

No one voluntarily lets their house burn down, ends up in a wheelchair, or causes a total loss of their car just to receive an insurance payout. I am not talking about insurance fraud, but about ordinary clients. Insurance, if set up correctly, provides financial compensation for the damage incurred. What it does not provide is compensation for the stress and worries that come with it.

Let’s imagine that water sweeps your house away. This happens relatively often in our country. The worries that follow include clearing the debris, creating a new design, finding a construction company, rebuilding the house itself, securing temporary accommodation, and replacing furniture and personal belongings. And as the icing on the cake, if the house was not insured, you have to pay for all of this yourself.

People’s financial situations differ. Some claim they have enough money and don’t need insurance. But do you really want to sell most of your investments—or even income-generating investment properties—just to rebuild the house that burned down? If you have debts such as a mortgage or a car loan, this is outright gambling.

Imagine you buy a car on credit that you need for work. An accident happens and the car is totaled. You no longer have the car, but the debt remains.

Insurance is a necessary evil—a paid service you pay for peace of mind, knowing that if something happens, someone else will pay for it. It is better to have it and never use it than not have it and need it one day.