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Insurance

Large-loss principle

When it comes to purchasing insurance, it is important to prioritize your coverage for serious loss exposures over less serious ones. This rule ensures that you are adequately protected against major risks that could have a significant impact on your financial stability. By focusing on the most critical risks first, you can make more informed decisions about your insurance needs and protect yourself from potential financial hardships. Remember, insurance is a valuable tool for managing risk, but it must be utilized wisely.
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