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In short: Insure the existential risks first (liability, income protection, term life if you have a family). Small, bearable risks are cheaper to carry yourself.

Insurance – only cover what really hurts

Insurance should cover what could financially ruin you – not every little thing.

  • Cover the existential risks first: liability, income protection, and term life if you have a family.
  • Deliberately self-insure small, bearable risks – it saves premiums.
  • Cancel duplicate or unnecessary policies; review contracts every few years.
  • Cover before price: cheap is useless if it doesn't pay out when it matters.

What matters

A good rule: only insure what would knock you over financially – not the broken toaster, but the loss of your ability to work. Personal liability costs a few euros a month yet covers million-euro claims; income protection insures your most important 'asset', your earnings. Skip cover for small, bearable losses – on average you pay more than you get back. Review your policies every few years, because life situations change and so do tariffs.

ExamplePersonal liability costs a few euros a month and covers claims up to the millions if things go wrong.
Track your premiums as fixed costs in Kontoo – so you see what protection really costs.

Checklist

  • Existential risks first (liability, income protection)
  • Check term life with a family or loans
  • Cancel cover for small losses
  • Review contracts every few years

Common myths

Myth: Lots of policies mean good cover.

Reality: What matters is a few big risks, not many small policies.

Myth: Life insurance is the best investment.

Reality: Better to separate insurance and investing – usually cheaper and more flexible.

Frequently asked questions

Which insurance policies really matter?

The ones that could ruin you financially: personal liability, income protection and – with a family – term life insurance.

Which insurance can I skip?

Cover for small, easily bearable losses (e.g. phone or glasses insurance). You carry those risks more cheaply yourself.

Related lessons

Tax basicsRetirement

All lessons · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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