8.1.1 To insure or not to insure?

If you had complete freedom to make your own decisions about insurance – if there were no legal or contractual requirements to have insurance – which of these insurance products would you buy and which would you not buy?

  • Travel insurance for a one-week holiday overseas. Cost of insurance: £50.
  • Home insurance in respect of your property being flooded. Cost of annual insurance: £400.
  • Extended warranty insurance coverage for breakdown of a washing machine. Cost of three-year insurance: £200.
Figure 1

OpenLearn - Managing my money
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