Why is price indicated as the number one priority most consumers indicate when shopping for insurance?
You would think the number one priority would be that it would pay out.
Maybe it's just implied that all insurance will pay out the exact same way regardless of the price?
You wouldn't assume that with any other product, would you?
I think the confusion comes from the word "insurance" itself. The word implies that you're buying protection.
Protection feels safe.
Well, this isn't really the truth, what you're really purchasing are words. Words that were crafted by the highest paid contract lawyers on the planet earth.
So when those sticks and stones, break your bones, wait till you find out what the words in your "price sensitive" insurance contract will do.
Words matter, and you will pay dearly for the addition and removal of key words when it comes to an insurance agreement.
Insurance premiums are charged based on the likelihood of the insurance company having to pay a claim. So when you say to the insurance company that you would like the cheapest possible premium, what you're really saying is: you would like to pay them a monthly sum of money, with the least possible chance that they will have to provide you anything in return.
That is a deal the insurance company will gladly make.
So when I hear people say they've had problems with insurance in the past, that's not really true. What they really had problems with was advice.
No one explained to them to true power of words.
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Dean Chapman is a financial planner with an affinity for business.