There are many products available in the market to satisfy the needs of the individuals; for most of the products, individual goes to the marketplace to make a purchase. Similarly, in the financial areas, the banking industry in existence for more than 100 years where the customers are keeping their money not only to grow it but also to keep in the safe place. People are proactive in placing their money in the banks because it satisfies their need for “safety” and “growth”.
On the other hand, have you ever seen individuals going to the life insurance company’s branch office to purchase insurance on their own? I have not seen such scenario, in most of the cases, insurance sales agent comes to the home or office to make us understand the policy and lure us to purchase the plan. It takes a lot of efforts for insurance sales agent to pursue with the client to purchase one policy. Why this change happen in the mindset of the people when they move from bank branch to insurance company’s branch to park their money? In this write-up, we shall explore some of the reasons and see whether it is possible to make some changes in the thought process of the people in the direction of purchasing the insurance on their own.
Human, in general, is concerned about self and their family, they are happy to place their money in the equity market, mutual fund and other savings instrument as it give them security and growth. One obvious thought process of such people that they save for the rainy days when the need will arise. Also, the money can be used for their family members. Human is concerned about himself and his family’s health and proactive in purchasing the health protection plan; this trend is increasing with medical treatment getting expensive and government withdrawing their hand towards the health care of the general population.
Human is also concerned about post-retirement and does long-term savings such as PPF, NPS, and other long-term investment, so that they can survive their life once their active earning period gets over.
In all the above examples, one thing is common; the human is concerned about the self and the family when he is “alive”. In all the above investments, the payments are received by the customer when the depositor is alive ( in most of the cases). The message is in none of the cases, the customer has made an investment for the family when he will not be alive.
This comes from our thought process that we are never able to see the most arrant truth “Death”. We are not trained to think in a manner what happens when we shall not be alive. This also comes from the self-centricity throughout our life that we do not see beyond “us”. This is a behavior which is an outcome of our central thought process which does not accept our existence. This is very core to the human. Unless this central thought is changed, the behavior of not thinking beyond our lives will not change. And this is the reason, world over; life insurance is sold rather than bought.
With increasing awareness and education, some thoughts are changing and people in the metro cities have stated purchasing the term insurance plan; however, in the non-metro cities, this awareness is not there.
There is a need to focus to change the mindset by reminding people the hardship the family may suffer when the breadwinner is not there. They must be made realize that family financial protection is equally important as compared to other investments. Such insurance is just a small cost of long-term protection of the family. The mindset of the people does not change with few advertisements; there is a need to have a continuous feed of such information how safe the family will be when they have term insurance of at least 10 to 20 times of their annual salary. This sends the positive message towards the life insurance.
Some investment in the direction of making aware the general public on the benefits of life insurance will pay rich dividend not only to the family but also building a strong nation. Let’s make aware people that every family must have at least one term plan of a Crore of sum assured.
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