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Tuesday, October 8, 2013

Go And Meet That Insurance Agent!

Insurance is a product that you should buy when you don't need it, because if when the time comes that you need it, you can't but it. It applies to all types of insurance...life, PA, fire, motor...same concept.

I have met so many people who resented when I brought up the topic of insurance. Probably the funniest incident was when an ex-classmate of mine told me that he has insurance coverage....in the form of MRTA!

Most common excuses that people come up with whenever I bring up the subject:

1) I already have coverage under my company
Consider this: you will never know when the company will show you the door out. And neither will you know when you'll be on your own and start a new business, or even join a new company. Whatever the situation may be, the fantastic coverage that the company accords to you stops the moment you are no longer under their employment. And when that happens, sooner or later, your health condition at that point of time is a point to be considered by insurance companies whether you are a risk worth insuring.

There is a classic example that was told to me by a friend many years ago. His ex-boss (in an MNC) was once upon a time a very proud man. He looked at agents as blood sucking leeches and will take every opportunity to say "Insurance tipu orang!" And he was ultra confident that the company that he was attached to would provide all the medical coverage that he needs. Then one fine day, tragedy struck and Mr Boss was paralysed in a freak accident. As stated in the terms and conditions of his employment, the company took care of Mr Boss' medical bills. And as also stated in the terms and conditions of his employment, Mr Boss was medically boarded out of service due to his condition.

The once proud Mr Boss is now living on the golden handshake given by his employers. No medical or whatsover insurance coverage whatsoever due to his condition. He is paralysed, and there are possibilities of him having health problems such as heart problems, kidney failure, cancer etc. At one time cold calls from insurance agents were his number 1 enemy, but none would call him. Why would insurance agents avoid him? Well, why must they waste their time soliciting business from him? At his condition, chances for insurance companies to insure him are very slim as he is a sub standard case. Or a large percentage of premium loading or condition exclusions are likely to be imposed if he is lucky. And at his inability to generate income, how would he be able to sustain paying for the premium? Any agents would not want their production persistency to be effected. And which agents would want to spend so much time sending him for medical test etc when there are so many straight forward simple cases by healthy prospects out there?

I am just trying to be real here. The role of an insurance agent is to solicit good business, and service the clients through thick and thin. But soliciting prospects in the extreme sub standard case category are too much of a hassle, and to put it bluntly, a waste of time.

2) I got no money lah!
Probably one of the biggest bullshit of all time. Agents are not dumb, they would qualify their prospects before doing an approach. Yeah, some are really financially tight. But the most baffling situation is some have the money for the latest handphone, ASTRO monthly subscription, RM100k plus car and all the good things in life, except money for insurance. And we are not talking about RM500 a month premium, RM150 is also too much. I can't dictate how a person should spend their hard earned money, but I'm just sad that their priority is towards lesser important things. What more can I say?

3) I already have insurance
Fine if you have a policy. Congratulations! But are you aware of your coverage? Or even what plan did you buy?

Some just give this excuse, as if it is an ultimate excuse to end the topic. Fine, well and good if you can answer 2 of those questions posed. But if it is just an excuse to kill the topic, then Mr Smarty Pants might live to regret it later, well if he is lucky to be alive. Ever heard of anyone saying "insurance tipu orang"...or "Insurance are bullshit! When it comes to claim, this one cannot claim, that one cannot claim!" Well, if you have a personal accident plan, you should not expect the insurance company to take care of your hospitalisation bills if you are admitted to the hospital for a heart bypass. And you also should not expect your hospital income plan to take care for your RM7,000 bill for your admission due to food poisoning. 

And definately don't expect your RM45 a month premium policy will provide you adequate coverage for a hospital bill of RM30,000! And please be reasonable with your expectations, I've come acrossed a genuine prospect who wanted to pay RM120 per month and expect the plan to have a sach value of RM100k in 10 years time!

There are even some who still cling on to their existing plan, although the plan and coverage is crap and inadequate. I don't encourage anyone to surrender their existing policy, in most circumstances it would not be beneficial to do so. But if you got to do it, then do it. NEVER have emotional attachment to your existing insurance plan the same way as you treasure that antique clock hanging at your home.

The list of excuses goes on and on. An agent with 40 years of experience might come across some fantastic new unthinkable excuses everyday. So think twice before you come up with some bullshit to shoo the insurance agent away. It's good to listen, you have the right to say no if you don't see the benefits anyway. The way I see it, whether you have an insurance policy or not...you are still covered. The only difference is if you have a policy, then you are transferring the risk to a third party. If not, then you are insuring yourself, and good luck!


Gowri said...

Very wealthy information. And those key points in which you had mentioned is very useful and also some valid points too. Really nice thank you so much

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Varun Nithya said...

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