If it costs less than $500 to replace, please do not buy insurance on it. I know that sounds strange coming from a financial advisor but hear me out..
Insurance is there to protect you from risks you cannot afford to take on yourself, not the ones you can. Yet every day, people everywhere pay extra to insure:
• Phones
• Headphones
• Coffee makers
• Even $200 plane tickets
It feels like peace of mind, but it’s really just a bad trade that the insurance company wins 90% of the time. You’re paying an insurance company to take on a risk that wouldn’t ruin you, just kind of annoy you.
Instead, I suggest that you raise your deductibles on the insurances that actually matter, skip the extended warranties, and focus your insurance dollars where it counts:
• Your business
• Your income
• Your life
• Your liability
• Your long-term assets
Real protection is about impact, not odds.
Yes, you are more likely to break your phone screen (like me) than you are to die. But replacing your phone screen is way less expensive than replacing you.
So save the $20 warranties on amazon and use that extra cash to protect the things that matter and build real wealth for your family.
