WHAT ARE THE COMMON MISUNDERSTANDINGS IN INSURANCE?
Vincent Tay (FCCA, CA Singapore) - I am Recruiting
MDRT 2022,2023 | International Dragon Award 2022 | Certified HNW Adviser and Personal CFO to Busy Professionals | Mentor to 2 Young Startup | A 6 min conversation may Unlock an idea for the next 60 years of your life
Last week, I tackled whether do we really need insurance? Today, let’s talk about the common misunderstandings in insurance.
So why are there misunderstandings in insurance? Here’s why. There are plenty of misconceptions, myths, and confusion around life insurance, which are the reasons why a lot of people are still hesitant to invest in it for themselves and for their family members.
Whether these misunderstandings started as a miscommunication or an opinion that was passed down from generations and got twisted along the way, there are certain things that we can believe is true when it comes to insurance.
Not many consumers understand how insurance works, much less what to purchase. Based on my research and surveys from different people in different countries, here are the most common misunderstandings in insurance.
- Expensive
- I am still young & healthy
- I don’t have dependents
- I rather save in the bank
- Extra cost
A lot of people feel that the insurance will cost more than the protection it will offer them. They tend to overestimate the cost of a life insurance policy. And just because you are still young and healthy, it doesn’t mean accidents won’t happen. Insurance is for the healthy. Even if you might be rich and can afford the premium, you will still not be able to purchase it in full coverage if there is a pre-existing condition. In addition, life insurance is cheaper when you are young.
Having no dependents doesn’t mean you don’t need to purchase life insurance. Life insurance isn’t just for retirement or to pass on a legacy when you die, it can also be used right now because there is critical illnesses coverage as well.
And definitely, It is important to have savings, but accidents and illnesses can strike anytime and you may not have enough time to save or your savings may not be enough. Besides, you never know when you might use your savings for something else.
Life insurance may seem like a pretty big commitment as well as an unnecessary expense, but we can’t avoid unexpected scenarios. Every single penny is worth it knowing that you and your family are financially well-protected.
Lastly, don’t every one of us deserve a peaceful night's rest daily?
First time financial planners or newbies have to meet quota set by their agency managers. When I put myself in their perspective, I do not have any warm contacts to call or market whatever humbug financial products filled with codswallop. So I will have to use a list of cold contact unknown numbers, many of whom belongs to angry, negative people. To "kick-start" my client base buildup How Asinine can some numbskull agency teach newbies financial planners this above?????
Here is one more misconception you may consider. Many Insurance agencies anyhow recruit newcomers promising a great career. One pile of Bull****