3 Atrocious reasons to buy an Insurance Policy

Posted 12 May, 2016 by Clearly
in Pitfalls to Avoid

Feels good to clean up the beach, its the right thing to do!


We generally want to do the right thing.

Stop snacking and exercising more.

Pay off our credit bills in full and on time.

Help an old lady cross the road (I did that only once, in my twenties. She didn’t really need my help)


However ,we sometimes do the right things for the wrong reasons. (I wanted to show my girlfriend then that I was a SNAG)

And could nullify the benefits, and perhaps even bring about greater harm.


Buying Insurance is one of those things we know we ought to do, but when the reasons for purchase are not correct, it could do more harm than good.

Here are our 3 (most) atrocious reasons to buy insurance that might potentially hurt your financial portfolio.


Reason 1: I want to support my friend


He ain't heavy, he is Elijah Wood!

He ain’t heavy, he is Elijah Wood!


Most working adults have faced this conundrum (meaning difficult situation, I just love using big words) before. Your friend (or someone you know, like a relative) is in the insurance line, and they approach you for business.

Johnny comes up to you and says, I’m having a slow month, how about you give me some support by taking out a small policy? You’ve known me for years, its definitely better than buying from a complete stranger.

So you reason, what’s wrong with taking out a policy with him? I know Johnny personally, and even have to interact with him from time to time. Surely that is added incentive for him to take care of my policy.


Why that is an atrocious reason to buy Insurance


You need your agent to be professionally responsible. When push comes to shove, can you bring it upon yourself to take your friend to task if you discover any mistake or wrong-doing? From experience, it is far easier to have that conversation with someone whom the relationship is purely professional, not personal.

Consider also the fact that he may not always remain in the line. Your policy is one for the long term, but he may not stick around that long. Would that sour your relationship? It’s a fact that agents come and go in this line. Odds are, your policy will outlast your agent.

If you bought a policy just to support your friend, what’s to stop him from asking you to buy a second, or third policy in the future? And if you have other friends who are agents as well, they might also come to you for “support”. Would you then be obliged to purchase from them as well?

Golden words of advice here: You only buy a policy if you truly need it, not because of an existing personal relationship.


Reason 2: My Agent is very persistent


3 days after the first meeting...

3 days after the first meeting…


Yes they can be. After the pitch, you might receive a phone call every other day. Text messages on the hour. The emails keep coming. You think to yourself, well he does have a point. I kind of need that policy. The pitch makes sense.

Two days after promising the agent that you would “think about it”, the calls come in. Of course, we all know you didn’t think about it.

At all.

You just wanted to prevent an impulse buy, for fear of making the wrong decision. So you proposed a three day “thinking period”. Except that there was no thinking involved after that, because insurance doesn’t sit high enough on your priority list (it happens, don’t feel bad).

Now you feel like throwing in the towel and proceeding with the purchase. That dude is just so persistent, and I guess I kind of need that policy anyway.


Why that is an atrocious reason to buy Insurance


There is a reason Time Shares and Multi Level Marketing continue to succeed to this very day.


Persistence from an agent is merely another manifestation of it. Granted not everyone can summon the will to reject another person outright, which is why persistence works.

Furthermore, your agent may have bought you a drink, came down all the way from Tuas to pay you a visit, and you feel bad about saying no. (Btw, enjoying a benefit also makes your beholden to return the favor, which is why you feel bad about not buying from promoters who offer you a free piece of fried chicken. Its human psychology)

If you give in and buy the plan without further thought, you may have bought yourself some short term peace, but down the road you may find that your needs were not truly taken care of. An agent’s role is to properly uncover a client’s needs, address his or her shortfalls, and suggest the most appropriate form of action.

Not to pressure the client until a sale is made. Most of the time, the pushy ones are also the most suspect.

Golden words of advice here: You only buy a policy if you truly need it, not to stop a barrage of calls from your agent. A simple but firm no! does the trick most of the time.


Reason 3: I get a free slow cooker


You see a slow cooker? I see a slayer of financial hopes and dreams

You see a slow cooker? I see a slayer of financial hopes and dreams


Stop sniggering at the back. But this does happen. Every so often you see a bunch of slow cookers stacked up with other *ahem* useful home electronic devices outside a roadshow.

The sign reads: Last 2 days!

Wow, 48 more hours before that slow cooker deal is gone. If I buy it at any other time, I’ll lose out on that fine kitchen accessory. So you sit down, and 60 minutes later, you are a proud owner of a savings plan and on your way home to make a casserole.


Why that is an atrocious reason to buy Insurance


You may scoff, but this scenario plays itself out far more often than it should. This is similar to the high pressure/persistence of reason 2, but now you are applying the pressure on yourself.

Long after the slow cooker has outlived its usefulness, and consigned to least accessible corner of the kitchen, you will find yourself stuck with a policy that you may not have even wanted in the first place.

What happens then?

You may regret the amount you had to commit.

You may regret the plan type you had to buy.

You may find that your insurance needs are still not fully addressed.

All for a slow cooker?

Golden words of advice here: You only buy a policy if you truly need it, not to enjoy a side benefit which has no direct relevance to insurance whatsoever. Besides, air fryers are all the rage these days.

Besides, air fryers are all the rage these days.


The Grand Conclusion


You’ve heard it from us a million times. Just hear us out again once more.

Insurance should only be bought when you see the need, understand your wants, and it must suit your financial goals.

Do you know any other reasons why insurance should not be bought? Do share with us in the comments below!


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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