Why does insurance tick people off so much?

There are two reasons why people will turn down meeting an old friend: they’re either trying to sell you on some MLM scheme or, they’re trying to sell you on a new insurance policy.

Two different products but they have one common feature - they’re both annoying.

Here’s the thing, at least with an MLM scheme, you could someday see returns (disclaimer: we don’t encourage you to join MLM schemes) but with insurance, more often than not we’ll end up paying a lot of money only to never see returns if we’re lucky.

And this concept is pretty crazy especially in this day and age when instant gratification is the norm. But the truth is, insurance is important and it’s something we should have. Yet, 1 in every 3 Malaysians does not have insurance or takaful during their prime years even though

they know it’s crucial for their (financial) well-being.

So the question is, why do people deliberately not get insurance? Are they really that turned off by it?

Here are 3 reasons why I think insurance ticks people off so much.

1. Aggressive sales tactics

Let’s be real here - insurance agents have given insurance a bad rep. From the way they approach potential customers to the aggressive sales tactics they use.

Most times, they pressure you into buying a policy that you may not need or you can’t afford by pressing on your pain points. They tell you all the “terrible” things that may happen to you if you don’t sign up for the policy and if you’re already unfamiliar with insurance, then you’ll likely fall prey to their insistence.

But of course, to be fair, not all insurance agents are like this. It’s just that a good majority of people have encountered these sorts of agents and lived on to tell the tale.

2. It’s too difficult to understand

One of the main reasons why insurance is so frustrating is its complexity. Insurance policies are often filled with technical terms and clauses that are difficult to understand. And this results in many people finding it challenging to decipher what is covered and what is not.

Additionally, insurance companies often have different rules and regulations making it difficult for customers to navigate.

This is proven in research done by Zurich Malaysia where 22% out of 1,201 respondents claimed that they still lacked sufficient knowledge about insurance and takaful. And this gap in knowledge greatly influences their purchasing behaviour where they simply don’t buy any policies at all.

3. Premiums cost too much

Insurance premiums are often high, and customers may feel like they are not getting their money's worth. Every year you would pay thousands in premiums but you’ll likely never see any benefits. Of course, this can be counted as a good thing because it just means you’re healthy and able-bodied. But let’s not deny that it makes us feel like our money is going to “waste”.

With all that being said, while insurance is a necessary part of modern life, it is not without its frustrations. The aggressive sales tactics, difficulty to understand and high premium cost, all contribute to why insurance can tick people off so much.

But it doesn’t have to be this way.

I believe that if people become more aware of the significance of insurance in their lives, they will sign on to a policy no matter the frustrations. The problem is that there is a lack of education on the matter which leaves people to be ignorant.

And as someone who advocates for financial literacy, I cannot avoid talking about insurance because it is a key part of being financially stable and smart. So, if you find yourself in a situation where you know you need to have insurance but don’t know where to begin then join me

on 29th April 2023 where I will share with you how you can get the most out of your insurance with a budget.

Spaces are limited. Secure your seat now: tiny.cc/myi23