Who Needs Insurance Anyway?
I spoke to a fellow named John the other day, he is a 46 year old business owner who came in to review his financial situation. When discussing what we might go through in the meeting, I briefly mentioned, we could look at ways of protecting his health and his hard earned money. “Do you mean Insurance?” he asked in an all too familiar cautious tone of voice. “Not specifically, it is part of what we’ll discuss but I’m more interested preparing for the unknown”.
The strongest believers in protection (insurance) are those that have had first-hand experience with the pitfalls that come from not being adequately covered – whether it’s a close friend that passed away or family member. The stress endured from having to deal with the financial and emotional ramifications whilst feeling helpless and being forced to rely on the generosity of others can change anyone’s mind.
If you don’t believe me go spend a day with an insurance claims officer, it will change your perception immediately.
On the day of our meeting John had witnessed a man of a similar age, have a heart attack out the front of his business. It was 2pm on a Saturday and the man, who was walking his dog at the time sadly passed away before paramedics could arrive. John now wants to look at ways to protect his family and the things that he worked so hard to obtain throughout his life. It’s a constant frustration for Advisers that it takes such a tragedy to remind people of the fragile nature of life and the importance of being prepared.
Australians are vastly underinsured, which is a widely researched fact, simply ‘Google It’ to see the proof. One in three people will be diagnosed with a form of Cancer in their life. The easy way out is to think “it’s not going to be me”. I encourage you to ask yourself these two questions:
1. Who are you responsible for?
2. Who’s responsible for you?
It’s considered social blasphemy if you mention you’re not getting travel insurance for a holiday or your ‘taking the risk’ by not holding car insurance. Why isn’t the same weight placed on your health and that of your family? Life is literally the only irreplaceable thing each person has.
“I’ll never have any problems”…
Suit yourself – I’d rather have it and not need it then need it and not have it.
Written by Jared Baker of Sage Financial Group