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How to adopt the correct Insurance mindset: 3 Stellar tips from an Economist

Posted 10 May, 2018 by Clearly
in Educate Yourself

Here’s something that we get a lot from people that read our blog:

“How do you guys keep coming up with fresh ways to present Insurance in a new light?”

My first impulse would be to attribute it to our devil-may-care attitude. (If it works, it works. Just keep trying something new lor)

But after yoga class, a meditation session and some really strong coffee, the real answer appeared like a TP roadblock after you’ve been out drinking:

 

We are just better than most at humanizing insurance.

 

What that means is, we don’t view Insurance as something separate from Life. Life and Insurance is one and the same to us, that is also the reason why it is called Life Insurance. (cornier than a Nebraskan farmers’ market, I know)

 

Corn: Great on a stalk, maybe not so much in a pun

 

It is this ability that lets us draw inspiration from seemingly unconnected spheres of knowledge and link it back to the topic that we know and love so well.

Ok thus ends the backstory. Onwards with the article. And no more corn(y) puns, I promise.

 

So I chanced upon this article titled “How can I be more productive?“, written by the economist Uri Bram.

And couldn’t help but go – Wow, these points are valid! To help people overcome the mental block of insurance, that is. (Weird, yes… but that’s the way my brain works)

And a new article idea was born.

Here’s what happens when you pair the points of an economist (him) with the words of a fully caffeined up writer (me).

 

The Economist says.. Put your long-term self in charge

 

The writer says..

Great for overcoming procrastination and fear of commitment. Our short terms selves care about the trivial and frivolous – where do we find the best deals for credit cards, what restaurant deals give the best cash backs, and when is the Infinity War hype going to end.

 

No one gives him enough credit for being a long term thinker

 

Our long term selves are the ones that take care of the long term consequences – like career choices, life partners, and making tough choices like buying insurance.

It could suck temporarily to give up your holiday to Venice or pass over upgrading your hand phone for the third time in as many years, but placing your long term self in charge will put these “sacrifices” in the proper perspective.

Incidentally, that also works for dieting and exercise. #justsaying

 

We also wrote about marshmellows, delayed gratification, and how they help you to be financially free.

 

The Economist says.. Remember Pareto

 

The writer says..

80% of your benefits come from only 20% of your actions. Translated to insurance speak, the most important of policies should provide you with majority of your required cover. The rest of them would be great to have.

For example, I personally roam the world with a fully upgrade Shield Plan, a Term plan that covers me till age 65 (for Death, TPD and Critical Illness), and a smallish Whole Life Plan, just because. That to me takes care of the bulk of my insurance needs – any other add ons are great to have, but definitely not essential in my opinion due to my personal situation.

You could well find yourself in the same boat. A handful of core policies will give you a good amount of essential cover, and the rest of the nice to haves… are just nice to have.

Which also brings up another point: There isn’t any real excuse to put things off due to “complicated policies” anymore. Unless you feel that you have the mental ability of a garden snail, these core policies just aren’t that hard to comprehend.

So even when it comes down to insurance, that Italian Economist still still maddeningly right.

 

“I told you so”

 

The Economist says.. Understand the true cost of distractions

 

The writer says…

Distractions in this case refer to free gifts. Inducements to purchase like discounts, free gifts, and whatever gimmicks that entice you to buy a policy that you wouldn’t have in the first place.

You don’t purchase a plan because it promises an awesome electronic device, but rather, you purchase it due to a coverage need that you want to fulfill.

By tuning out the distractions that are present, you will be make a far more rational choice – one that you will be far less likely to regret later.

 

Great decisions are hard to make when staring at temptation

 

We explored one such case that led to an ultimately regretful purchase.

 

That’s all, folks

 

This is all the dosage of Life inspired guidance I will be providing today. If you haven’t done so already, share this article with your friends so that they will be awed by your intellectual choice of reading material.

Or they might just stop talking to you altogether. But hey, after we accept the reality of the 80-20, then 50-50 odds sound laughably acceptable.

Go forth and channel your inner economist today!

 

www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.

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