Do you ever realise how often you have been told that you needed something?
10 places that you need to visit before you kick the bucket.
You need to read this before you post any photograph on Facebook.
5 dresses that you need to have to look stunning.
After you have bought those clothes, you found out that you did not really want them.
Let alone need them.
You will be like:
“Why the hell did I get them in the first place?!”
Creating a need so as to sell.
The marketing experts have you figured out.
They know that they must create a need in you in order to move their products.
And to do so, they want you to feel a little lousy about yourself.
Or they may try to make our movie watching less pleasing with awkward product placement.
Should you be satisfied with your life, you will not feel any need for change.
As a result, you may choose to not buy anything.
And that will not do.
So they try to make you think otherwise.
With perfectly sculpted models.
Beautiful family living a wonderful life in their new condominium.
Obviously, those are not needs.
They are just Wants.
You don’t need to have a perfect body to enjoy life.
It is just a preference.
And you don’t need insurance to protect what you have.
You just want to do that because you love your family.
Insurance is no different.
It is usually not a need.
Differentiating between Need and Want.
A need is something that you require to survive.
Food, water, oxygen are the most basic needs of any human being.
But it does not end there.
We need to feel safe.
Some place we call home.
A little piece of heaven that we feel safe and secure.
What is a Want then?
If you choose to have a Kobe steak instead of plain old rice, it is a Want.
And you choose to own a BMW instead of a Chery QQ just because you want to feel rich and successful.
It is simple when we put it this way.
But the advertisements that we see on a daily basis, confuse us.
It makes the boundaries between needs and wants a little blurry.
However, we have to differentiate them because we simply cannot have everything.
Unless your name is Warren Buffet, you usually have to make financial choices.
And you need to prioritise your needs before your wants.
The same goes for insurance.
Let’s look at some examples when insurance is a Want and when it becomes a Need.
When insurance is a Want.
Even though we are a life insurance advocating site, we believe that most insurance is a Want.
It should not be difficult.
You don’t need a whole life policy to stay alive, do you?
Getting a backup plan for your responsibilities is great.
But you want to do that.
You often do not need to do so.
One form of life insurance that parents buy is endowment policies for their offspring.
It is often timed to mature at the time when the kid is having tertiary education.
But do you really need it?
The answer is no.
You want it because you feel an obligation to provide the means for your child to be academically competitive.
You want it so that he or she will not have to shoulder a study loan.
But you do not need it simply because your kid will not go hungry without it.
If you have a considerable sum saved up and your partner is earning well, your insurance need is actually a want.
You want your spouse to have an easier time coping when the family does not have your income.
It is definitely difficult to bring up a family on a singular income but it can be done.
Having said so, wanting to protect your loved one is important.
It is not as vital as feeding your family or providing a home for them.
Yet it should be prioritised over other spendings such as a car or a Rolex watch.
When Insurance is a Need.
When you are the sole breadwinner in the family.
If you do not have much savings.
And your employer is money-pinching douche-bag that does not cover you medically.
Insurance may just be a need.
When you are unable to work, your spouse will have difficulties providing for the next meal.
Should you be hospitalised, you are unable to afford to pay for even the deductibles or co-insurance of the Medishield Life plan.
Without your income to pay the rent, your family will be evicted.
This is when insurance is a true need.
Not just for you but for your loved ones.
By hook or by crook, you have to get yourself protected from such unexpected and unfortunate events.
If one is in such a situation, one cannot afford to get insurance.
That is not true.
Going by our Compare section, you can easily get a 29 year $100k term protection at merely $390 per year.
It is $32.50 per month and about $1 per day.
And it comes with critical illness coverage!
It is not much.
But just about enough to cover you while your kids grow up and become independent.
It is adequate to provide your family with their next meal when you are not around.
A Decision Made Easier.
You may ask why are we doing this.
As a life insurance preacher, we should be telling you that life policy is a must-have.
We should be placing guilt on people who do not believe in insurance.
However, that is not our social mission.
We set out to address the information asymmetry within the insurance sphere.
It is only right that we make sure that you address your basic needs before spending it on insurance.
At the same time, we have to reiterate that wanting to buy insurance is not a bad thing.
It is always great to protect those that matter the most to you.
We want to make it easier for you to decide if you should get insurance within your limited budget.
After spending your first few dollars on your basic needs, are you going to prioritise your next purchase over insurance?
Are you entirely sure that a brand new handphone is of a higher priority over your family protection?
Or whether the branded bag you’ve been eyeing is more important than having the coverage for critical illness.
Only you have the answer.
And we certainly hope that this article has made it easier for you to arrive at the right answer.
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.