Yes, its’ true not many people like Insurance. It takes some time to convince a person for whom Insurance is clearly beneficial- to go for it. People hesitate, they fail to intuitively appreciate its benefits. Why?
Well, there are several reasons.
First one, Insurance is related in people’s minds as a product for the worst case scenario. Intuitively we do not like to think that worst case would ever happen to us. It’s always someone else who meets with an accident, suffers a heart attack or gets into a hospital. We will always be safe and we don’t need insurance.
Second one, you don’t get anything in return if you don’t suffer a mishap. We expect a product to be useful to us at all times. Good times and bad times. A product that’s useful only in bad times and not good times, we dislike it.
Third reason, it’s a difficult product to understand. The terms Insurance people use are not normal English. They may not mean anything to you. For example, how can you relate to a term like “ Accelerated Death Benefit” . You may be wondering can death be beneficial to anyone? And if it’s accelerated, will it be more beneficial? Well you see the point here, by using terms which are not normal- you start disconnecting with the product proposition.
Fourth reason, the process of applying is cumbersome. You need to fill in a long form, they ask you questions that make you feel uncomfortable. Some answers you know, some you don’t really know. You keep wondering what would happen to the claim if you have given wrong answers? These are legitimate concerns of prospective buyers of insurance.
Fifth one, bad service. You might have heard about some one’s claim not being paid off. You do not know the reasons. But instantly you start disliking Insurance because in your mind, the insurance company has let the family down. It’s a breach of promise and you don’t want to have anything to do with it.
Fifth one, mis-selling. Someone told you that your insurance covers this and that. But later you find, that’s not the case. You realize you’re taken for a ride. You obviously believed the guy who’s selling insurance. You never had time to go through the 10 page policy document. And when you lodged a claim there’s small print that says your claim can not be paid. You instantly start disliking the whole business.
Now the truth is- in every industry, there are good companies and bad companies. There are good products and bad products. There are efficient processes and ineffective ones. People who choose the right plan are OK and people who end up with the wrong one are unhappy and spread the bad word around.
Thankfully, things are changing fast. Affordable, useful and simple insurance, explained in plain language is available easily . You can double check whether you are getting the right one or not by going online.
Recommendation: Don’t dislike Insurance. Ask questions and take a bit of time to read the stuff before you buy. If you still get the wrong product, return it immediately within the Free Look period. Insurance is getting simpler now to make you feel better about it.