This post was originally seen on RateHub.ca.
Going to the gym instead of crashing on the couch, having a side salad instead of fries, or taking public transportation instead of driving. What do these things have in common with buying life insurance instead of putting it off? Research shows that people get the same feeling of satisfaction knowing they did the right thing rather than choose the easier option, even if it meant there was a little extra effort involved. So why are Canadians still typically underinsured?
Here are five lame excuses for not being insured and the truth behind each one:
1. I'm young and healthy so I don't need it
Unfortunately, bad things do happen to young and healthy people more often than we like to believe. Young people often think they're invincible or that statistics are in their favour. The truth is that you never know what could happen. While this isn't meant to frighten anyone, there's no denying the uncertainty of life. Unfortunate events like accidents or illnesses can have expensive, long-lasting consequences. The best time to buy insurance is when you're young and healthy, which is also when it's the most affordable!
2. I don't understand it and it's too complicated
Actually, it's pretty simple! By paying an insurance company small amounts on a regular basis, you're buying peace of mind. Your loved ones will get a large amount of money back if something bad happens to you. Well, maybe it's a little more complicated than that, but not by much. There are plenty of resources available on the internet to help you learn all you need to know about insurance. But if you're still confused, look for an advisor you're comfortable with and who'll take the time to explain it to you in terms that are easy to understand.
3. Insurance is too expensive
The best time to buy insurance is when you're young and healthy. The cost can be as little as a cup of coffee per day, especially if your needs are fairly basic. Insurance only gets more expensive the longer you wait to buy it. People are living longer and are healthier than ever, which the insurance companies call "improvements in mortality and morbidity rates." That means that many insurance policies have actually fallen in price over time. You might be surprised at how little you'll have to pay to get coverage that'll suit your needs.
4. I don't trust insurance salespeople
There are thousands of licensed insurance advisors in Canada. If you haven't met one you like or trust, keep looking. Ask a friend, family member, or even your employer if they can recommend someone. If you work with financial professionals like accountants or lawyers, chances are they have trusted insurance contacts in their networks because they often deal with more complicated tax and estate planning needs. If you find one you're considering working with, ask them for references.
5. I don't have time to shop for insurance
We all know that time is made, not found. We make time to do the things in life that matter to us, like exercise, volunteer, get medical and dental checkups, etc. Why wouldn't we find time when it comes to taking care of our future and that of our loved ones? We'll pay for other people to do work we don't have time -- or want -- to do ourselves, whether it's cleaning the house or mowing the lawn. Shopping for insurance requires a similar decision, as well as making your future self's well-being a priority. Being responsible and protected requires a little effort and investment. But in the long run, the benefits will far outweigh the risk of not having insurance.
Dan Poole is the co-founder and chief operating officer at Invisor, an online financial advisor in Canada that provides personalized investment management and insurance services.
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