One of the boring realities of adulthood is the realization that money ought to be spent on things that aren’t fun. Periods of higher inflation aside, this can happen to the extent that disposable income suffers considerably – to the point where one has to ask oneself if ______ [insert new item under consideration to be purchased] is a want or a need?
You’d think that that were a straightforward question, easily soliciting a clear (and correct) response – but that’s not always so.
When is an easy question difficult to answer correctly?!
Sometimes, perception of need is difficult to grasp and, if mistakenly identified as too low, is mislabeled as a want (much to its detriment). The need of peace of mind supported by appropriate insurance coverage exemplifies this type of scenario best; where the perception of risk (i.e., ‘need’ by a different name) is misidentified as too low to correlate with the cost-benefit associated with it. After all, who wants to pay an ‘extra’ charge on the cost of a mortgage? If it’s optional? See what I mean?
The harsh reality of life is that unexpected and tragic things can – and do – occur. Such low frequency but high impact events are, ironically, precisely for what insurance coverage is meant to compensate.
If you can’t afford a bit more, you’re already spending too much
To be clear, I am not a qualified mortgage broker or consultant (I am pleased to make a referral); however, I am able to share my observations and make recommendations based on my direct client experiences. Please do yourself a favour and consider seriously paying the ‘extra’ for mortgage insurance. I liken it to paying a generous tip at an expensive restaurant; if you can’t afford the tip, you shouldn’t be eating there to begin with – so if you can’t afford a little extra on every mortgage payment for peace of mind, maybe you shouldn’t stretch to afford such an expensive property.
Ironically, you’ll be able to truly relax and enjoy your property all the more when you know you’re properly insured.