How Much Insurance is Right For You?
Insurance decisions range from trivial to significant, accumulating impact over time. Intuition can mislead, especially when premiums rise due to risk. Key factors include hazard size, wealth, risk aversion, and insurer margins. Greater transparency in insurance margins can help families make informed choices, improving financial well‑being and societal welfare.
This article also has links to a calculator and spreadsheet which apply the framework described herein.