The Mind Money Spectrum Podcast

#24. Always shop around for insurance, and above all avoid these common traps.

May 26, 2020 Aaron Agte and Trishul Patel Season 1 Episode 24
The Mind Money Spectrum Podcast
#24. Always shop around for insurance, and above all avoid these common traps.
Chapters
The Mind Money Spectrum Podcast
#24. Always shop around for insurance, and above all avoid these common traps.
May 26, 2020 Season 1 Episode 24
Aaron Agte and Trishul Patel

In this episode, Aaron and Trishul discuss insurance companies. How do these firms determine their premiums? How much should you pay? And when it might be appropriate to "self-insure"? Aaron and Trishul dig into left-tail risk and the law of large numbers when comparing car insurance to life and long-term care insurance. If something is likely to happen eventually, you can assume the insurance company is going to charge you enough to cover for that event. Insurance policies often fall on a spectrum, with some good, no-brainers on one end, and with some borderline sketchy sales tactics on the other end. But many are in that gray area, where it depends on your individual preferences and circumstances.

Episode References

Tail Risk - Definition
What Are the Odds?
How Many Times Will you Crash your Car?
Term Insurance - Definition
Long-Term Care Insurance Facts
Whole and Universal Insurance - Definition
Avoiding High Insurance Costs by Self-Insuring
Things you Need to Know About Annuities
Investing Forever - Insurance Check-Up
Investing Forever - Stormy Weather

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Aaron and Trishul discuss insurance companies. How do these firms determine their premiums? How much should you pay? And when it might be appropriate to "self-insure"? Aaron and Trishul dig into left-tail risk and the law of large numbers when comparing car insurance to life and long-term care insurance. If something is likely to happen eventually, you can assume the insurance company is going to charge you enough to cover for that event. Insurance policies often fall on a spectrum, with some good, no-brainers on one end, and with some borderline sketchy sales tactics on the other end. But many are in that gray area, where it depends on your individual preferences and circumstances.

Episode References

Tail Risk - Definition
What Are the Odds?
How Many Times Will you Crash your Car?
Term Insurance - Definition
Long-Term Care Insurance Facts
Whole and Universal Insurance - Definition
Avoiding High Insurance Costs by Self-Insuring
Things you Need to Know About Annuities
Investing Forever - Insurance Check-Up
Investing Forever - Stormy Weather

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.