Sometimes I feel like I live to pay insurance. Between life, health, homeowner, auto and long-term care, I figured out that about 20 percent of my expenses are insurance premiums. There’s something wrong with that. Sadly, I have succumbed to the fear instilled by the insurance industry.
I recall someone once telling me he didn’t buy life insurance because it is like gambling against yourself. I don’t know about that. We all know we will die, so it’s not really a gamble. Knowing when is the tricky part. A crystal ball would put us in a better position of knowing if it would be better to invest the money rather than waste it on premiums; in a sense, become self-insured. But that’s where they get you – fear of the unknown and guilt about leaving your loved ones in dire straits.
Image courtesy of Stuart Miles by FreeDigitalPhotos.net
Health insurance is a touchy subject, at least in the United States. Before managed care plans, we went to the doctor, paid the bill and submitted a claim to the insurance company. We were happy to get back whatever we could. Managed care was supposed to be our savior, but I’m not so sure. I was at a party where a doctor was talking about how he had to hike up his rates because of reduced insurance payments. Then he went on to talk about his two homes and upcoming vacation to Europe. It made me feel sick, but I decided to forgo the doctor visit.
Home and auto insurance sales people put the fear of God into us too. What if you are displaced? Get sued? Lose everything? Long-term care is another one. What will you do when you get old and can’t take care of yourself? We’re all going to get there some day. What do you mean you can’t afford it? How can you afford not to? The finance industry uses these same tactics to entice you to invest money for retirement. I attended a financial planning session where the salesman opened with, “It’s not if you are going to die, but when you are going to die.” Glad he wasn’t invited to the above-mentioned party.
I haven’t even touched on all the other insurance policies out there – disability, dental, vision care and let’s not forget pet insurance. Never mind the fear of the next presidential election. Beware of the salesman.
Gail's Blog 
Yeah, it’s pretty crazy. Think of what we could do with all that money we spend on insurance. But if we didn’t have it, well, that’s scary to think about. Probably just what the insurance companies are banking on.
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That’s exactly what they’re banking on. They leverage our fear to get our wallet. Every time I pay another insurance premium, I feel like I’ve been mugged. But you’re right. I fear being without coverage more.
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Pingback: The Latest on Long-Term Care Insurance (rate hikes, inflation, selling and whatnot) – LTC Global Agency
Thank you for the link!
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Thanks for writing about this. Insurance agents really need to change the way they pitch their products. We really understand the struggles and anxiety consumers need to face, with the fear of not being covered as icing on the cake. We wanted to make sure that more people know about this, so we featured your post in our Weekly Digest. You can read it here https://ltcga.wordpress.com/2016/06/25/the-latest-on-long-term-care-insurance-rate-hikes-inflation-selling-and-whatnot/.
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Thank you!
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Pingback: The Latest on Long-Term Care Insurance (rate hikes, inflation, selling and whatnot) - LTCGA
Gail the sad truth is there ARE some that push the negative aspects of the insurance to make a sale.
But have you stood beside a grandmother that had a family member die and now they are borrowing from family and anyone to bury their relative…I have and it’s not fun it’s sad.
When an agent overburdens anyone with more than they can afford then it is immoral.
Please don’t look down on all of the sales people and lump us into one bucket as most really see a need that the person has and is trying to fill that need. Thanks for writing about your experience and letting me post mine. Take care- Ed
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Thank you for your comment, Ed. I appreciate your perspective. It was not my intention to offend sales professionals, but to express my personal struggle with the fear of being over-insured against the fear of being under-insured. Yes, I have been witness to the tragedy of the uninsured and it was scary. Insurance premiums are scary too, but rates are not set by individual salespeople, so I understand your position. There really is no easy answer that I can see.
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