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Protection

3 Mistaken Beliefs Stopping You From Buying Life Insurance

Written by Singlife | 08 Apr 2018 |

Everyone has mistaken beliefs – that’s part of being human. Our beliefs play a very significant role in how we live our lives. We defer to our beliefs when making decisions, and tailor our behaviours to fit them. Beliefs also help us describe and make sense of the world.

To feel the power your beliefs hold over you, just imagine doing or saying something taboo in front of your boss – the mere thought is enough to make you shudder.

For the most part, our beliefs serve us well, helping us to act in beneficial ways, while stopping us from making bad decisions. However, because beliefs are powerful yet subtle, we may unknowingly hold on to mistaken beliefs that put us in a disadvantageous position.

Mistaken beliefs can crop up in any arena of life. Sometimes, their impact is negligible. Other times, however, mistaken beliefs can hinder us from important things, such as getting the life insurance coverage we need.

Here are 3 mistaken beliefs about life insurance you may have.

Mistaken Belief 1: I Don’t Need the Coverage

Let’s start our discussion with the most common belief that stops most people from getting an appropriate life policy: They simply think they don’t need the life insurance coverage. This belief is as common as it is unfortunate, and there are multiple facets that lead to the same result.

Some of us believe that as long as we are careful to stay alert to dangers, and maintain our health, and never take risks, we can peacefully pass through life without encountering a major injury or disease. Those who follow this school of thought may consider themselves to be disciplined and careful – going for regular check-ups, looking both ways before crossing the road, sticking to prevailing nutritional guidelines, etc. In short, doing everything the right way.

However, this is actually highly risky behaviour, simply because as human beings, we cannot predict whether an accident or a serious illness will occur. Sure, we can take steps to reduce our likelihood of experiencing a catastrophe, but we cannot eliminate the possibility of such events occurring (barring extreme measures such as locking ourselves up in a hermetically sealed room all day long!)

There is another darker thread that underlies the belief that insurance is not needed. Simply put, some people resign themselves to Fate, thinking that if something serious should happen, they just have to deal with it then.

This mentality is not only short-sighted, it is also selfish. While you may not care about your ability to deal with a life-threatening disease or injury, your family members and relatives will feel the burden of supporting you through recovery.

A third factor that may cause someone to think they do not need life insurance: They believe their savings, Medishield and employers’ insurance are sufficient to cope with any emergencies. This is an assumption that is very often wrong – most people underestimate the cost of a catastrophic event. Also, it fails to account for the loss of earnings that could occur. In other words, this strategy is apt to fall short, which will leave you in trouble.

It is important to recognise that we all need life insurance coverage. The only reasonable action to take is to transfer the risks of Life to an able and willing party, so we can be protected against the negative consequences of troublesome life events should they occur.

Mistaken Belief 2: The Premiums Aren’t Worth it (Little to No Returns)

Some people don’t believe in life insurance because they do not like the idea of paying premiums over a long time, only to get little to no returns. This perhaps stems from a consumer mindset – we are used to getting something tangible (a product, service, experience or privilege, etc.) in return for handing over our hard-earned cash.

When it comes to insurance, what you’re paying for is something slightly more vague – protection – and some people may find it hard to wrap their heads around that.

To be sure, we normally do not think about the many dangers that we can encounter in our daily lives. This could be why those who do not buy insurance do not believe in its value.

However, they’ve got it backwards. You don’t buy insurance because you’re afraid. You buy insurance so you can stop worrying about the myriad things that could go wrong, knowing that should anything happen, you and your family will have the resources to bounce back.

Additionally, there are various types of life insurance plans available, some which offer savings and/or investments along with protection. If you are the type that prefers to get something back at the end of the day, those types of plans would be ideal for you.

Mistaken Belief 3: Having Insurance Doesn’t Help You Stay Healthy

Some people believe that insurance is a ‘passive’ product, because it doesn’t actually do anything to help you to stay healthy on a day-to-day basis. In fact, some may believe that having insurance coverage causes you to be less careful and actually take more risks!

This may be so in the past, but the insurance industry today is rather more focussed on servicing the needs of policyholders. Recognising that the foremost concerns of customers revolve around issues of vitality and longevity, leading insurance companies encourage and reward proactive steps taken to stay healthy.

Singapore Life is introducing a rewards scheme which provides cashback on premiums paid for policyholders who maintain a certain level of physical activity. Through our Stay Active Campaign, you will receive cashback on your policy premiums when you are amongst the top 50% of participants who achieve the most number of steps. All you have to do is to sync your fitness tracker to our portal and clock in the steps.

And to better inspire our policyholders to take an active role in their health, the number of steps required to qualify each month will vary, based on the activity level of every participant. This means you and your fellow participants will be challenging each other to be more active and to include more exercise into your daily lives.

With fun and rewarding innovations like this, subscribing to a insurance policy no longer needs to be boring and meaningless.