Insurance is an important part of a person’s finances, and yet it is not the be-all-end-all answer that insurance agents and self-styled “financial consultants” would have you believe. After covering the necessary, an extra buck spent on insurance is another dollar that could have gone towards your retirement instead. But what is necessary? Here is an approach that I hope would help you approach your next insurance purchase better, or aid in the review of your existing policies. It’s all about financial risk management As non-billionaires, we face many types of financial risk in our lives. They can be broadly classified in four categories as below: Low probability and low impact events We have events that may happen that are unlikely to happen, and the financial impact isn’t devastating if it does happen. An example of this would be losing or breaking your mobile phone. Personally, I’ve never done this before...