Insurance is not exciting. But getting it wrong can undo years of financial progress in a single event.
The Purpose of Insurance
Insurance exists to protect you from financial catastrophe — a large, low-probability event you cannot afford to absorb on your own. Insurance is not an investment. It is protection. Evaluate it accordingly.
What You Absolutely Need
Health insurance is non-negotiable. A single hospitalization without insurance can cost KES 200,000 or more. NHIF alone is insufficient for serious medical events. Life insurance is essential if anyone depends on your income. Term life insurance is affordable and straightforward.
What You Can Likely Skip
Credit life insurance attached to loans is often overpriced relative to standalone term coverage. Travel insurance for domestic travel is usually unnecessary. Extended warranties on electronics are rarely cost-effective.
Your Action Step
List your current insurance policies. Check the coverage amounts. Check what is covered and what is excluded. Start with health insurance if you do not have it — that is the most urgent gap.
