Do you have a life insurance policy? If the answer is no, then why? We decided to take a look at 5 reasons why you could be terrified of life insurance. See if any one of these applies to you. Maybe reading through these will help you overcome your fear. Just maybe, you may catch an interest in exploring the topic of life insurance and its benefits a little deeper.
Here Are the 5 Reasons You Could Be Terrified of Life Insurance:
5. Fear of the Unknown
It is the most basic principle, which often prevents you from getting involved in new things, We are creatures of habit. Notice that majority of the things you do in your life have a very steady routine. Life insurance is something, which breaks the daily routine, plus it deals with an uneasy topic. This is why we are trying to introduce you to some of its basic principles on our web. To better understand, means to loose fear of the unknown. Take the first step, read on and you will soon stop being terrified of life insurance.
4. Bad Experience With an Insurance Company
Another obvious reason why you could have reservations are bad experiences. You may have experienced a denial of benefit payout or several other issues, but the big question is, who did you do business with? Was it a reputable company? Did you do the proper research on the policy issuer?
Without a doubt there are many companies trying to take advantage of you. This is why the life insurance industry is one of the most heavily regulated. It is worth it for you to do some research before making such a long term commitment. Not all life insurance companies are created equal.
3. Wasting Money
You could be terrified of life insurance because you see it as money thrown away, wasted. We wrote an article about protecting your #1 asset. Protecting people you love, or high value investments you own, is never a waste of money. It’s all a matter of point of view. If you purchase a $100,000 home policy on a $500,000 home, then this could classify as a waste of money.
This is why you must make time and sit down with a life insurance expert and figure out the right terms for your policy. In terms of product as well as cost to value ratio and level of protection. You will not be terrified of life insurance once you’re covered with a proper product.
2. Bad Insurance Sales Experience
Maybe you purchased a policy from an inexperienced freshman salesperson trying to make his/her quota only to realize, that the policy doesn’t satisfy your needs. When you get into such a complex topic as life insurance, you need advice from an expert. How do you tell if someone is an in an area that you are not? The obvious are references, which you can obtain from internet, Google, or possibly your friends and family. Other major indicators you may look at are the approach and focus of the seller. If he/she is focused more on total amounts of coverage and higher payments above your personal needs, then you are probably better off with a second opinion.
Life Insurance Agents
There are also two basic types of life insurance salespeople. First category is career agents. They are licensed, certified, well knowledgeable, but can have a few drawbacks. One of them is that they are tied to a single life insurance company. Meaning they are only allowed to sell this company’s product. They also have monthly quotas to meet, which are required to stay with their particular company. These factors tend to put pressure on them and can create circumstances, where they must give priority to quantity over quality. And no one likes to be forced to buy anything. Dealing with some of these guys can definitely make you terrified of life insurance.
Life Insurance Brokers
Second category are brokers. Brokers are sort of freelancers. They are not tied down by quotas or a particular company. They are on their own and can offer you much bigger variety of options. Brokers are fully licensed, trained, certified, but run their own agencies called brokerages. Of course that even brokers can try to upsell or use pressure sales tactics, but in general are not under as much pressure as career agents.
This is the number one reason on our list because it is the strongest and hardest to break. You can be terrified of life insurance simply because you are convinced that when you buy a life policy, bad things will happen. Superstitions are personal fears and you must understand that life insurance is not something you get because you are planning on dying, but for “what if” situations. Just like when you get an insurance on your home, or a car. Did your car crash once you had it insured? Did your house get destroyed when you had it insured? No? Well, then there is no reason for you to be terrified of life insurance.
In closing, did you find the reason that applies to you? If not, leave us a comment below and let us know why you are terrified of life insurance. If you want more information, don’t be afraid to drop us a line or ask us in comments below.