Why Insurance Terrifies us: And what to do about it

Posted 25 August, 2016 by Clearly
in Opinion


If you have lived anywhere except under a rock all your life, chances are you have been propositioned to buy something.

Anything from broadband plans, credit card applications, IPOs, you name it. Heck, even Life Insurance for that matter.

Chances are you’ve also said no to all of them – at some point of your life.


Seems that we need to bring this with us – at all times


Broadband plans? ” Oh, I’m with Singtel right now, no thanks”

Credit Card Application? “I already have the right miles card”

IPO? “Nah, I’ve never heard of that company. Not my cup of tea”



The funny thing is, we very probably went right ahead to purchase or acquire some of these things. It’s safe to say that you have broadband at home, have more than one credit card in your wallet and are a shareholder in a number of listed firms.

But what about Life Insurance?

Unfortunately, Life Insurance is notorious for one reason: It is sold, never bought. And the reason it has to be coaxed, persuaded, convinced, cajoled into being bought: We are simply terrified of it – for various reasons.

If you are brave enough to jump into the rabbit hole, let’s go uncover what those reasons are – and how to banish them forever.


Terrified of the Cost


Is that my Life Insurance bill? Or foreign aid to a third world country?


We know that we need Life Insurance, in some cases we actually want it. But what stops us from taking action is the cost, or rather, the perceived cost.

We think that Life Insurance is something hefty, costly, and there might be a high chance we may not be able to afford it later down the road. Let’s all take a deep breathe here and calm down.

Do you indulge in coffee?
Sign up with a gym membership?
Catch the occasional movie?
Do you travel once in a while?

Insurance is cheaper than each of these. Individually. Read about it here.


What to do about it

Same thing you do with airlines and hotels and watches and handbags before you purchase them. You compare prices, look up reviews and make a careful, informed decision that saves you money.

Compare prices of different Life Insurance here. Look up reviews and post questions in our forum here.


Terrified of being Mis sold


Is it really that difficult to spot a con man?


Heard about the story about the agent who conned her clients out of millions of dollars? You might have a personal tale even, of a close friend or relative who was “tricked” into buying policies that were not suitable. It may have happened to you personally too.

This fear is very real because of the way the remuneration structure works in Singapore. The majority of the Financial Advisers are only paid via commission – meaning if they don’t make the sale, they don’t get to eat.

You can only imagine the incentive it provides to make the client sign on the dotted line – and why cases of fraud and high-pressure sales land up on the front page from time to time.


What to do about it

The good news is: Life Insurance is not rocket science. Far from it. In fact, with an open mind and 20 minutes of attention, you will be able to get the gist of the most important aspects of Life Insurance.

To remove the fear of fed the wrong information and thus making the wrong decision – just educate yourself instead of letting the adviser do all the educating. For one, you have a far greater propensity to ensure the true facts are presented than the adviser.

Once you get yourself up to speed, the fear of being mis-sold will evaporate. You may find yourself being able to challenge the agent or adviser, and engaging in more meaningful discussion. You will also be able to tell the good advisers from the quacks and hard sells.

Total time investment: 20 mins. Get up to speed here.


Terrified of being Human – and thus vulnerable


A letter of Guarantee from God – something I don’t have


Deep down inside, one of the most difficult truths to accept is that – we are only human. We might get sick. We may lose our health permanently. We are vulnerable.

Insurance forces us to come to terms with that bald statement.

It can be hard to accept for some.

You might be an athlete.
You might be in the pink of health.
Never broke a bone in your life.
No history of medical conditions in the family tree.
Grandparents lived to a ripe old age.

Guess what? You are equally vulnerable compared to the rest of us. Ironically it is easy enough for people who have enough negative health experiences to accept insurance. For example, more than 97% of people afflicted with a critical illness worry about getting struck again, in a study conducted by Nielson here.


What to do about it

It’s time to grow up. Whether you are 25 or 55, it does not matter. What matters is your mental maturity.

Illnesses are not confined to those with a family medical history.
Accidents do not only happen to the frail and weak.
Premature death is a shock – because it is so unexpected.

The sooner you accept that your name is right in there with everybody else’s in the giant lottery bowl in the sky, the sooner you can take positive action to prepare for it – when the unexpected does occur.


Closing it out with Yoda


Take you to the light, I must


This lovable green jedi is famous for his take on the dark side:

Fear Leads to Anger
Anger Leads to Hate
Hate Leads to Suffering

Isn’t it time that you turned away from the path to the dark side?

Beat your fears today – there has never been a better time, and there will never be a better time

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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