While I absolutely love doing what I do – selling insurance is not easy. Don’t believe me? Try talking to your friends or family about insurance and you will see their eyes gloss over and excuse themselves from the conversation. While insurance is an extremely important part of your overall financial plan, there are some key reasons why you may dislike insurance.
1. It’s a product that you purchase and never want to use. It’s very difficult to see the value in a purchase that you don’t get to enjoy. The only way you get to use the insurance is if something bad happens.
I truly hope that I waste my money and not claim on the coverage I have purchased. I really don’t want to die prematurely, become disabled or have a serious illness. However, I couldn’t imagine not having the coverage in place. My family depends on my income. Therefore, I depend on insurance to be there for them to replace my income in the event I can not earn it because I am either dead or disabled. See, talking about insurance really isn’t fun – but it is important.
2. It’s a complex product. There are a lot of different options and opinions in the market. There are acronyms that are used and you have no clue what they mean.
There are a lot of different companies, all of which have a lot of different products available to consumers. It’s nearly impossible to know which company is best for you without working with a broker who knows the sweet spots of these companies. It’s also difficult to understand the insurance jargon, meaning you need to work with a broker who can help you understand the coverage in layman terms.
When I first started in the industry, a few of my colleagues were talking about STD claims during our Monday morning sales meeting. I was shocked – I couldn’t believe how many people were claiming because of STD’s. Well, I thought they were talking about “Sexually Transmitted Diseases”. Turns out, they were talking about Short Term Disabilities. I realized then and there that I will never use this jargon with my clients.
3. No Trust in the Insurance Agent or Company. Some may think that the insurance companies are all about the sale and making a profit and will do anything to not pay out at time of claim.
It is extremely important to work with an experienced broker who has integrity. You need someone who can help you make an informed decision and allow you to understand all your options. We have all heard stories of an insurance company not paying out, myself included. Majority of these stories relate to simplified coverage. Simplified coverage is very easy to purchase as you just need to answer a few knock-out questions. The issue with this type of coverage is that if you answered one of those questions incorrectly (accidently), the policy may be null and void. Some of these policies may also conduct post-claim underwriting to ensure the questions were answered accurately. One reason why these policies are growing in popularity is that it is quick and easy for both the broker and client. I personally steer clear of these types of policies and help my clients understand the benefit of applying for traditional coverage which may require a nurse to come out and visit to obtain blood and urine. This allows the client to provide full disclosure at time of application.
4. Hard to get a second opinion – most people who are not in the insurance industry do not really understand the complexities of the products offered. This means that a second opinion only comes from other insurance advisors – who are trying to “sell” you something.
You need to find a broker who isn’t just trying to sell you a product. There are many brokers like myself who take the time to educate their clients without pressuring them to buy. It’s not my job as a broker to tell someone what the need to buy. It’s my job as an insurance broker to help someone see the value in the coverage and help them understand their options. It’s also my reasonability to identify the best product and company in the market to meet their goals.
5. It wont happen to me. You take care of yourself, work out, eat healthy. There is no way that I will be the one to get cancer, have a heart attack, slip on ice or have a mental breakdown. I am invincible!
We all know that we are not invincible. Bad stuff happens to good people all the time. It’s foolish to think that it’s impossible for you to ever die or become disabled unexpectedly. In fact, there is a 1 in 3 chance that a working-age Canadian will become disabled and unable to work before they turn 65. Next time you meet someone who has had cancer – ask them if they thought if it would have happened to them, I am sure that most would say never. While we may hope that we live a long, healthy and happy life – the fact of the matter is that we just don’t know for certain.
The reason I personally have insurance is that I understand that the financial future of my family depends on my ability on earn an income. Insurance gives me peace of mind that my retirement savings won’t be depleted or that I may lose my house if I were to become disabled. It provides me peace of mind that my family can support themselves if I were to pass prematurely. It provides me with more options if I were to become critically ill. It provides my family choice and reduces the financial stress if something bad were to happen to me.
That said, I really hope I don’t ever need to use the insurance. I would be grateful if I paid the premiums and never needed to claim. I would be satisfied knowing that my wasted premium dollars went towards helping someone else in a terrible situation. I am lucky and it is a privilege to have the insurance coverage I have.
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By Jeff Romansky
CHS, CPCA Principal, SecurePlan Insurance Solutions www.secureplan.ca
Jeff started his insurance career in 2006 by helping hundreds of insurance advisors grow their business by providing them with comprehensive advice, consultation and training. After nine successful years, he decided to take his knowledge and start his own practice to ensure his clients are getting the best advice. His office is based in Grimsby, ON and he serves clients throughout Southwestern Ontario and the GTA.