Wealthy Habitat

Your first paycheck · Lesson 11 of 12

What insurance is for

Insurance is a trade: you pay a small amount every month so that someone else pays a large amount if a certain bad thing happens. The deductible is the first part of that large amount that is still yours to pay.

It is for the things that would break you, not the things that would annoy you. A cracked phone screen is what a cushion is for. A hospital stay is what insurance is for.

Opening your place…

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