You should always buy an insurance policy before the risk in consideration has already occurred. For example, if you have a car, you should buy an auto insurance before you start driving the car. In fact, many of you will say that this is a "common sense' answer because no insurance company in the right mind will be willing to insure you after you are already involved in a car accident. True indeed.
Unfortunately, this answer becomes unclear when we start to talk about life insurance or health insurance. A lot of us carries this false sense of security that insurance is not really necessary when you are still healthy. However, no matter whether you like it or not, tomorrow is always a mystery. You should buy an insurance policy when you need it least because the price to pay for it will always be highest when you need it most.
In my next posting, I shall discuss about unit trust.
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