My smart brother-in-law and I were talking last night and he brought up a good analogy about why some people are uncomfortable talking about insurance as it relates to making total financial decisions for your family. He said that much like knowing you need to go to the doctor, there is a fear that you’re going to be told something that you don’t want to hear.
He went on to say that most people have that internal voice telling them “you should be saving for retirement”, or “you should cut back on your spending”, but people often resist the inclusion of good insurance planning in the discussion about financial need-to items. So sitting with someone like me who presents a written plan telling you all that your insurance should do for you and also pointing out the problems if you don’t is uncomfortable. Add to this the complexities and technical jargon of coverages, deductibles, premiums, etc., and it is no wonder that many people have a natural inclination to put off creating a formal insurance plan.
I find this very insightful and very true. Bothered by this, I called a friend this morning whom I think has done a tremendous job of becoming more financially happy and I asked her about her fear of insurance planning.
She claims to have been quite uncomfortable when she received her first insurance plan. She had a lot to do and a lot to change. But she says she’s now a total convert and an evangelist for insurance planning because it has given her the motivation and confidence for focusing on things she'd really like to focus on. Having her insurance in order has allowed her to focus on creating small habits that over time have helped her tackle some of her bigger goals, like retirement and living her bucket list. “Nobody likes the start of an exercise regimen, but everyone sure likes the results once it has become a habit. My insurance plan was hard to start, but it is now exactly why I am so much happier with my financial situation. I know what I’m doing and I know where I’m going.”
