As a former insurance salesperson, I have attended countless classes on the subject of how to motivate clients to buy life and disability insurance. However, I remain sympathetic to the fact that many of you refuse to buy this coverage for several heartfelt reasons.
(Warning: Overly dramatic scare tactic ahead!) Unfortunately, once you are dead or permanently disabled, you no longer have the choice. And since you will die and statistically, you have a significant chance of becoming disabled before age 65, I would like to encourage you to consider the following responses to some of the most common objections. I share this with you as some one who has nothing to gain from your decision to follow my advice. I’ll never even know about it.
I don’t trust salespeople: I understand. There is an inherent conflict of interest when the professional who is making recommendations stands to profit from them. But remember, this is also the case with your doctor and attorney. It’s not a reason not to seek professional advice when you need it. You just have to choose your agent wisely and ask a lot of questions. Ask friends, family and co-workers who their agent is. Check through you local Department of Insurance and the Better Business Bureau.
I don’t want to think about my death or disability: I hear you. This topic feels too scary and depressing for many of us. What is also depressing is when your spouse has to frantically try to sell off assets to avoid bankruptcy because you died with little or no life insurance. I know this scenario is often used to manipulate people but I have seen it played out and it is heartbreaking. In many cases it is 100% preventable.
I don’t want to spend the time it takes to shop for insurance: I know what you mean. Wouldn’t it be great if it were simpler? It does take a lot of time which is another reason to invest the energy required to find a good agent. She will know how to make the process less stressful and will help you understand the critical points of your insurance plan. You can also learn about insurance and various offers at sites by doing a simple search.
I don’t see or feel the need for it: If it ain’t broke, don’t fix it right? Well, not exactly. Sounds like you’ve just been lucky. Does anyone depend on your income or caretaking contributions to the family? Then you probably need life insurance. And you should also consider disability insurance though it is harder to qualify for and is more expensive than life insurance. Disabilities are even more devastating to a family’s finances than a death is. The disabled person is usually no longer earning as much, if any, but requires extra financial resources (medical expenses, home remodeling to make it handicap accessible, etc.). Meanwhile, the other family members must become caretakers and primary breadwinners.
I have group benefits through work: That’s great. But in my six and a half years in the insurance business, I saw several cases of group disability claims being denied. These cases were striking because each of these clients had also purchased individual insurance policies which did pay their claims. As a rule, individual disability policies are richer (meaning they pay a better benefit and have more favorable definitions of disability) than group disability policies.
I truly do understand your reluctance. Many years ago, I too was once one of the hostilely insured. But since I have done my homework, talked through the difficult issues with my husband, and committed to a life and disability insurance plan, I really do have peace of mind. I know that sounds like a cheesy brochure, but it is my reality and I hope that you will at least consider making it yours.
Image courtesy of Dystopos