Why on earth do we need insurance?
In the good old days, when the earth was still flat and everyone lived in the same time zone, you probably didn't know much about insurance, unless you had put something down as collateral for a loan. There's nothing wrong with the idea of insurance, and it does have some value in the big picture.
What's wrong is that many people are forced to sign up for insurance policies they don't really need or that won't cover their needs when they need them.
There are a lot of good insurance companies out there, but there are also a few that just want to make a quick buck off of you and cause you problems over and over again.
Many people spend a big chunk of their income on things like insurance, health care, their car, their home, and their life. Insurance companies have come up with a lot of other policies to cover other things that could happen.
All insurance protects against the risk of a bet. It is clear that it is based on our natural fear, which is also how insurance is sold.
There is always a fear of the unknown, of places you have never been and don't want to go to. The insurance agent will take you there and tell you what it's like, making you almost too scared to go.
Picture this: you and your wife are sitting in the dining room, and the insurance agent is right across from you. He is sitting in front of you and telling you about this unfortunate family who didn't get insurance the day he was there. Before they could sign the contracts, the unthinkable happened, and now they are stuck with nowhere to go.
You don't want to be in this situation. This is followed by one or two stories of people who got insurance just in time, and there are pictures to prove it. You feel bad for that poor family, who now has to deal with trouble and hardship, and you're happy for the other families who can now get by and move on.
The picture in your mind plays on your fear of not knowing what will happen tomorrow, and you don't want something like that to happen to you without being ready.
The agent tells you about all the benefits you'll get if you buy this policy now. Considering what you've just heard and seen, it not only seems like a good idea, it's a must.
The insurance agent then looks at you and your wife, waiting for a response. He doesn't say anything, and there is an odd silence. You ask about one or two things, he explains them perfectly, and then he asks if you have any more questions. You say "no" because you really don't know what else to say. He gives you a pen and the contract.
This is just sales, the pitch, getting past objections, and making the sale.
Yes, you can get out of the contract later, but it will probably take you a whole day and a lot of frustration to do so.
Strangely, though, you are the one who is betting that something will happen to you, and you really do think it will. On the other hand, the insurance company bets that it won't happen.
If you think about it, this makes sense. How else could the insurance company make money? No matter what you think, they are in business to make money, just like every other business. So nothing is wrong with it.
But you should be careful not to buy insurance based on how you feel. This is a contradiction because all purchases are made based on feelings. You might think there is some logic involved, but it is a very small percentage.
Don't sign anything right away. Take a day or two to think about it and let your feelings settle, then make a decision. Also, give yourself time to read everything in writing, including the small print, very small print, and very very small print.
It's a huge pain in the you-know-what, but it will show you clearly what you won't be getting. Talk to the agent again and ask him or her to explain anything you don't understand. Also, make sure that the policy you're thinking about is right for you.
Remember that your worst enemy is your fear of the unknown. You won't be able to get rid of that fear, but you can take your time when buying insurance of any kind and don't let yourself be pressured into signing a contract that won't help you when you really need it to.
