Sunday, March 15, 2009
WHY IS IT NOT RATIONAL TO TERMINATE OUR INSURANCE PLANS WHEN THE ECONOMY DOESN'T PERFORM WELL?
When the economy is bad, unemployment rate increases. Many people are jobless. They have no income but they still need to eat. If they still can't find a new job, some of them will be forced to commit crimes like robbery, snatch and others. As a result, crime rate will increase. When crime rate increases, our safety will be threatened. We may become the next victims of robbery and snatch.
Of course, having an insurance plan doesn't reduce crime rate in Malaysia. But, it at least helps us to cover our medical bills when we are injured due to an accident, robbery and snatch.
In sum, it is not wise to terminate our insurance plans when the economy performs badly. If we really can't afford it, we can try to reduce our annual premium by reducing our coverage.