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?

It went something like “if you buy many different insurance policies, you have a house poorly renovated or decorated, but full of fire extinguishers. Was by Christopher Tan of Money Owl I believe. Anyone remember exactly what he said? Thanks in advance. Trying to use the example to explain to my family members on insurance.

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.