In this video we are going to talk about the insurance that you should consider having, ...and insurance can be the difference between a very bad time or a great impact on your personal finances and stable personal finances regardless of the unforeseen events that may arise. And in its most basic form, insurance is the transfer of part of our risks to an insurance institution: for example. If you have a car, you are exposed to the risk of crashing and causing damage to third parties. Without insurance, you would have to pay the total of the losses you have generated, with insurance, in exchange for a monthly or annual payment, an insurer assumes most of this risk (I say most because it will have a co-insurance and a deductible that you must cover, but these can be super small compared to the total amount of damages. Theft insurance Unfortunately, our material things (be it our vehicle, the things inside our home, our merchandise, or our personal items) are exposed to theft. And I think it is easy to imagine how complicated it would be to replace them. Theft of personal items: outside your home, you are exposed to assault, having your phone stolen, your laptop perhaps, your cards and being forced to make cash withdrawals. If you usually carry several things, it is important then that you consider insurance that covers at least part of these losses. Home insurance: inside your home, your goods are also exposed. Although, perhaps due to the lower probability, these insurances are usually much cheaper and include additional liability protections that protect you outside your home. of your home: for example, in case you accidentally cause damage in a commercial establishment (let's say you trip and knock over a $80,000 screen, this insurance protects you). It sounds like something very unlikely, that's why they can be as cheap as $1,000 a year. Health insurance This is especially important for self-employed workers or those who do not have social security (IMSS or ISSSTE). In case of illness or accident, the costs for hospital services can be high. That's why it's important that you consider taking out insurance voluntarily with the IMSS. The IMSS itself has a Family Health Insurance that protects you and your family members. The costs of this insurance range from $3900 annually for people under 19 to $10,800 for those over 80. Life insurance There is life insurance without savings with a validity of 5-25 years (5 at a time). If you have dependents, this is one you should consider. If your husband, children, parents or someone else depends on your income to live, life insurance is essential. Now, your employer has probably already provided you with one, but if not, it is extremely important that you consider getting one on your own. The best thing is that this type of insurance usually also covers total and permanent disability, in which case the insured amount would be given to you, and it has a savings function! This does not mean that I will now recommend you save through this insurance instead of investing in CETES, since it is just that, savings, not investment. But it is a very interesting instrument. By protecting against total and permanent disability (which is an option that I recommend you add to your life insurance, in the case of mine it meant paying approximately 9% more per year) I now have the peace of mind of knowing that, in a certain scenario, I do not stop receiving money overnight. If I can no longer work, where will my income come from? Well, the insured amount will be given to me. It’s not that it’s such a large amount that I shouldn’t worry about it at all, it would surely run out in just a few years, but at least I would have that time to figure out an alternative. Because it has a savings function, I can recover a large part of the annual payment! The payment I make for the basic coverage (pure life insurance) to start with is in UDIs (it goes up year after year due to inflation, but it also means that my money doesn’t lose value for the same reason) and to finish I can “withdraw” it if I so wish. Although the % of what I can withdraw grows as time goes by. For example, after two years of having the insurance, I can only withdraw 10%, but after 25 years, I can withdraw 100%, which also, remember, is in UDIs, that is, in pesos (assuming an average inflation of 4% per year) it will be 154%! Insurance (savings) for education Having a negative experience such as an assault, an illness or accident that takes us to the hospital, or the death of a family member is in itself something terrible that we hope never happens to us. But if they also have a negative impact on our personal finances, their impact is multiplied and can last beyond the experience itself. Through these insurance policies you can at least protect your financial stability and that of those you love.