 In this section, I will explain how diversification can help us in reducing the cost of insurance. So, it is believed and it is observed and it is calculated also that if you diversify, then your cost of insurance is reduced. So, this is the standard which we follow and if you are investing in a kind of financial instrument and if you take insurance to control or cut down any possible risk exposure then consider the cost of that. If you buy insurance with the investment of the portfolio, then the insurance of the portfolio or the insurance of the entire portfolio that you have to pay for the cost, that would be always smaller as compared to if you invest in one or two different types of investment opportunities and pay them separately for your insurance. So, this helps you, diversification not only helps you in reducing your exposure to risk it also helps you in cutting down the cost of insurance. So, as an example, we use the same investment of our medicines again. Suppose you are investing $100,000 in a drug's stocks and you have bought two kinds of drug's stocks then you have to pay a separate fee for both the investment but if you take the entire portfolio in which you buy multiple types of products then you have to consider the investment opportunities the investment instruments and you have to make a portfolio that you have invested in as a portfolio then you have to buy only one insurance policy of the entire portfolio and when you buy one insurance policy and when you buy two insurance policies then naturally you will have to pay more money for insurance if you are borrowing buying two policies for two different products then when you have to pay for two different financial instruments then it will always be more as compared to if you buy one policy of the entire portfolio So, diversification not only helps us in saving from losses or risk but also helps you in cutting down the cost of insurance.