Why You Don’t Need Insurance?
23 MARCH 2020
“You don’t need Insurance. You just need that assurance.” – Leo
I was talking to Mr Lim, a cold prospect in his 30s, during my street canvassing in pre-covid times. He proudly exclaimed that he doesn’t need any insurance, at all.
My reply to him was “Yes, you are right, you DON’T need insurance, only if you fulfill these 3 criteria: 1) You will NEVER fall sick or meet into any accidents 2) You do not have any dependents, 3) If you were to fall sick or meet an accident, you would not go to the hospital. You have to die on the spot. If you don’t fulfill these criteria, then we need to talk.”
I’m sure some of us may echo what Mr Lim had said – he don’t need insurance. What some of you actually mean, is that you don’t want insurance, you just need that assurance. To the masses, insurance is a necessary expense not an asset. You may not like the idea of getting one, but you need the assurance that it can bring you, when slapped with hefty medical bills due to an illness or injury. You wouldn’t want to part with your hard-earned savings just to pay for that hard and uncomfortable hospital bed that you slept on, for only two days, would you?
Insurance is a topic that many avoid for countless of reasons. To me, the three main reasons on why people are averse to insurance are:
1. We prefer the TANGIBLES to the INTANGIBLES
As humans, we prefer things that we can see, hear and feel. We buy food to satisfy our hunger. We buy house to shelter our family. We buy a car for convenient traveling and comfort. We prefer instant gratification to delayed gratification. When it comes to buying insurance, we find it hard to digest something that we can’t see, taste, feel or touch. Insurance falls under the INTANGIBLES. It’s hard to see its value and purpose until an accident triggers its usage.
2. We prefer NOT TO touch on something Morbid
If you really don’t like to think about death, you’re not alone. Death is an unpleasant subject, and insurance (life insurance) raises issues of our own mortality. Some people say that the very thought of starting the life insurance buying process makes them feel stressed out. There’s no great appeal to contemplating our own mortality. It’s a subject we’d rather ignore than address. The result can be inertia or denial.
3. We don’t trust Insurance Companies & Agents
We often view insurance agents as aggressive salespeople who are in the industry because of the high commission-based remuneration. As such, the negative perception that insurance agents will do anything to get you to part with your money and into their pockets. In short, prioritizing their immediate economic interest over yours. The numerous media publications of insurance agents committing fraud, has lowered the trust of many people, and tarnish the reputation of financial institutions.
Conclusion
The life insurance industry continues to be quite imperfect. That being said, uncomfortable things are part and parcel of life. Catastrophic events happen all the time, and without insurance there is no mitigation.
Countless stories of gratitude can be found tied to agents or insurance companies for coming through financially when they were needed the most.
State and public usually react very negatively when insurers are slow, or refuse to pay claims (regardless of truth) and the regulators will also typically receive a wave of complaints about the insurer’s practices.
Many insurers thus pay claims promptly to maintain public good will and maintain good standings with insurance regulators.
Yours Advisory
If you are considering Critical Illness coverage for yourself or your loved ones, do consider speaking to a specialist, like us.
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