Let’s admit it, some of us still cringe at this topic. We just simply do not like talking about it. And I believe the reason for Insurance hate is pretty straight forward. Many of us just DO NOT understand insurance. It is probably just the fear for the unknown.

Just like every other topic we have no understanding of, like world politics or climate change or quantum physics, we avoid them like the plague. Unless of course, if you are among the few who actually have a keen interest on these subjects.

Unfortunately for the rest of us, insurance, though intangible as it may seem, is not only real, but has become a necessity. I believe it is time for us to face our fears and get ourselves educated on this matter.

However, before the education can begin, we should first look at why we dislike this subject so much. As they say, the first rule to eliminating your fear, is to understand it.


5 reasons why we hate insurance:

1. It is too complicated

Well yes it can seem pretty daunting, but it really isn’t that complicated. The sooner we learn about it, the better. Ignorance isn’t always bliss. Especially when it comes to matters that are important. Just keep in mind that insurance isn’t evil and that it too can be understood.

There are many websites that offer information to help you get acquainted with the concept and the different types of insurance coverage. Keep an open mind. Spend some time browsing through these sites and learn the basics. One useful website that can help you is Insurance Info.


2. It is intangible

Yes you do not see what you are paying for and this frustrates you because you feel like you are wasting your hard earned money. All you get from buying an insurance plan is a few sheets of paper i.e. the contract which is too hard for you to understand (more of that later).

Yes it is intangible, but remember that you are actually getting protection against rainy days. In other words, you are paying for your security – by transferring your risks, such as loss of properties due to fire or theft, or loss of ability to work due to an accident, to the insurance company.

These are all unforeseeable events that may or may not occur. But wouldn’t you want some peace of mind knowing that if something unfortunate does happen to you, that you and your loved ones can rely on your insurance plan for protection?


3. You don’t understand the contract

No one enjoys reading contracts other than perhaps lawyers. The language is too foreign, there are too many terms and conditions, provisions and exclusions etc. Many of us don’t even read the contracts after receiving them from our agent.

So what do you do? I suggest you get your agent to explain it to you. Inform your agent before buying an insurance that you would like her to hand deliver the policy to you when it is ready and that you would like her to explain every clause to you. Have a Post-It pad ready and write down important notes as your agent clarifies each line, and stick the notes on the pages of the contract itself so you don’t lose them.


4. You don’t trust the agents

And why should you? They are all unscrupulous, deceitful and dishonest. They are a bunch of crooks out to get your money. Are they really?

Have you personally had a bad experience with an agent? Or have you only heard of someone having such encounter? Perhaps you have been unfortunate to know one or two shady agents, but is it enough to generalize all of them as being untrustworthy? Perhaps not. In our previous article, we spoke about the qualities that you should look for in an agent. This can help you find yourself an agent that you can trust and rely on.


5. You have heard of people having unfavorable experiences with insurance companies/ claims

People usually feel cheated by insurance company when they do not get the compensation as per their expectations. This is mainly due to the lack of understanding of their policy coverage.

I will stress again here that knowledge is key. Spend time educating yourself on the basics of insurance. Never buy an insurance without fully understand its terms and conditions. Before making the final purchase, ask for a draft policy and have your agent explain it to you.

If ever you doubt the credibility of the agent, find another one. If you are dissatisfied with the policy and/or company, continue to look for one that suits your needs. Do not feel obliged to purchase an insurance policy from the agent just because he bought you coffee and doughnut during your meeting! If you need help in looking for an agent, start here.  You may just find a perfect one for you!