It’s no secret that life insurance is seen as a “grudge purchase”, but a 2014 survey conducted by Finmark Trust has revealed that 40% of adult South Africans have no insurance at all. According to the survey, they just don’t feel that insurance is affordable.
According to an online survey conducted by NerdWalet.com, some of the most common reasons why people aren’t willing to buy life insurance are:
- Life insurance is too expensive. In reality, 80% of the respondents had actually overestimated the cost of insurance — some by as much as 213%.
- You don’t need life insurance if you’re young. Young people don’t understand that it’s cheaper to buy insurance while they’re still young and healthy, and to allow that policy to evolve as they age.
- There are too many choices. Consumers are scared off by the number of options available in the market, mostly because they don’t understand what the products offer and how they differ.
- Stay-at-home parents don’t need insurance. Just because clients aren’t formally employed, doesn’t mean they don’t play a beneficial role — one that can be expensive to replace. Stay-at-home parents can also get ill or injured which is why critical illness cover, for example, is as necessary for them as it for the family’s breadwinner.
- You can’t get life insurance if you’re ill. Many clients believe illnesses like HIV/AIDS and even non-communicable diseases mean they won’t be able to get insurance. In reality, it’s more likely that they’ll just have to pay a higher premium or have an exclusion applied to their cover.
- Single people don’t need insurance. But single people do still get ill and have accidents don’t they? Disability cover is essential for anyone who relies on their income to pay the bills, and life cover is particularly important for single people who are business owners or who financially support their parents.
- It’s better to save your money. While savings are important, they can’t replace a well-structured policy. A sound financial plan should include retirement savings and life insurance.
Does this sound familiar to you?
Please contact me on 081 270 5802.
P/A: 4-Sure Administrators cc. **
Box / Bus 10570, George, 6530
Wicam Building/Gebou, 26 Wellington Street, George, 6529
Cell: 081 270 5802
Tel: 044 873 2938
Fax: 086 274 1004