You Do Need Insurance...
To protect your income. Whether or not you have dependents, you do need to eat, don't you? Or at least have the dignity not to fend off your parents' money (okay, maybe if you're in your early twenties, not earning much, and living with dad and mom, you're excused).
In this case, what you need is disability and accident insurance. If you meet an accident and get disabled, this kind of insurance will compensate for physical loss (in case of disablement, like your feet or eyes....ouch) and, as an option, reimbursement for medical expenses.
To protect your assets. That means major property like your house, office, and cars. You'll need fire insurance, homeowner's insurance, and car insurance. Some policies cover valuables inside your house. But you don't want to insure items that won't constitute a catastrophe if you lose them.
To protect your dependents. If you have people dependent on your income, like your spouse, children, and even business partners, you need life insurance.
To protect your net worth. It's possible you can get sued for practising your profession or operating your business. You don't want to end up penniless, that's why consider personal liability insurance (or comprehensive general liability insurance).
To comply with requirements. Sometimes you have no choice. Like when you get a housing loan, your bank will require you to get credit life insurance. So in case you die before you pay off your loan, they still get paid. How nice of them.
So, yes, you do need insurance. The important thing is to know why and when you need them. That's why you have to ask yourself "Do I need insurance?"
The next question is "How much do I need?" Now, we'll leave that one some other day. For next issue, we'll tackle Principle #6.
