These residents saw the value in spending just fifteen dollars a month to be protected
against catastrophic losses such as this, and their lives are impacted far less.
Instead, consider life insurance as coverage for the financial realities of death - funeral expenses, and perhaps money to provide grieving time for your family before they resume or take on work [Again, insurance is
coverage against catastrophic loss, not a lottery ticket to provide a windfall when the unfortunate happens].
While Cook's approach is intended to
guard against catastrophic losses, there is an element buying higher and selling lower at play, which contradicts conventional wisdom.
Insurance may help
protect against some catastrophic loss, but if the real estate market tanks you could easily lose 20 % -40 % or much more (especially since real estate is typically a leveraged investment).
An umbrella liability policy is a personal liability policy designed to protect
against catastrophic losses.