Anyone that went for the Seedly event? Do you guys remember the example of fire extinguishers on the topic of insurance? By Chris Tan of MoneyOwl?

Hi Anonymous and Kenneth

Thank you for asking! It's been a while since I told that story..haha..Anyway, I wrote an article about it and it is found here:

https://www.providend.com/why-most-needs-can-be...

Cheers!

Yes! I do remember his story. I think it's a great story to share regarding how insurance works, it's original intent and why it's a pretty good strategy when covering downside. (for this specific reason)

It goes something like this:

• When renovating your home
• You would buy 1 x fire extinguisher for each room
• If you spend overly much on 3 or 4 fire extinguishers in each room, it does not make economic sense to spend excessive amounts of money
• You'd rather spend that excess amount of money on things outside of fire extinguishers. For example, cupboards, painting etc.

To draw the comparison here with Insurance:

• When designing your life
• You should buy 1 x insurance coverage for each segment of your life
• For example, Term life covers you in the event of death, Critical Illness cover you in the event of critical illnesses (eg Cancer, etc), Hospitalisation covers you in the event of Hospital and surgical needs
• So ideally you don't have too many insurance policies which overlap

Therefore, term insurance is like a cost-effective fire extinguisher. It exists due to an event of fire (or emergency). Nothing overly fancy.

Pretty much something like this. I hope I'm giving enough credit to the story he shared. In fact Christopher shared with me this story 2 years ago, which till today sticks with me!

Hopefully Christopher Tan jumps in and explain it to you nicely and in a more wholesome way as well.