To an average American, there are two surest things in life – death and taxes; but funnily enough, life insurance can provide relief from both of these factors combined. Anyway, this piece is not about how to employ life insurance to defend against the impacts of death and taxes when you’re gone – we’d examine that in another piece soonest, but this is about why most people do not want to buy life insurance and why it took a long time before you actually bought one too.
1. People hate anything sold by agents: Yes, insurance agents approach you to buy life insurance or any other kind of insurance and they take time to explain the concept and benefits to you – which you hate because you think they are “marketing” things to you and trying to force you to part with some money…no, commit you to parting with money every month or year – because while they have the guts to talk about your death, you may fail to die; and you think planning for your dependents is not their business.
2. Discussing about your possible death is never interesting: It is actually fearful and even morbid talking with a stranger about your death, and there is no denying that fact. No one wants to talk about his death and consider what might happen to his family and loved ones in the event of his death, so he puts off taking any action on life insurance until “a more appropriate” time which might never come – unless prodded by an agent again.
3. Too many life insurance products: Customers like the idea of having options, but not necessarily where life insurance is concerned because it is confusing with very little clear differences. Hei tauira, for an American, there may be term insurance, permanent insurance, whole life, universal life, long term care insurance, accidental death, critical illness insurance, disability insurance, variable products, graded and modified, guaranteed premiums, living benefits, return of premium, policies for 5,10,20,30, or for life coverage – all very confusing to a potential customer.
4. Everything about insurance is urgent, and complicated: That is the truth, insurance agents have a way of telling you to do it quick and you even hate the complication behind the products. You want to know how much insurance you really need so that you don’t overpay or pay for coverage or product you don’t need, and you simply have to find a way of adjusting your family budget to accommodate the insurance policy.
5. Life insurance costs too much: You like the fact that your dependents can access a lump and attractive sum upon your death, but you wonder why you must pay so much premiums for them to have such a benefit when you die.
6. You don’t trust the insurance company: You fear they might fold up after you’ve been paying premiums for like 10 years; you also think they may fail to pay up when you die and then make your dependents suffer; you even think they may pay less than what they have promised you, and so on.
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