ALL too often, life insurance advisors get the “no need” objection from their prospects. As a matter of fact, this objection is so common that there were already several counter-objections created as rebuttals. I personally cannot keep track how many of the people I have approached use this objection, and more so the response I answered when I was still new in the industry to persuade them otherwise. Now, I realized, after several recent and not-so-recent experiences, that the best time to get life insurance is when you don’t have a need for it at all—yet.
A friend of mine once approached me and inquired about purchasing a life-insurance policy. I was elated but regretfully told her she is uninsurable. You see, she already has hypertension and kidney problems and was also diagnosed with an enlarged heart. She makes a trip to the hospital at least once a month, and that’s not for check-up. She runs the risk of collapsing any time because she, as her doctor explains, is not getting enough oxygen.
My friend is only 32 and a single mother of four.
She certainly has the need for one but her medical condition does not allow her to be insured. The tons of requirements would certainly be an underwriting nightmare. And in the end, given her ailments, her case would most likely be declined.
Her case is an example of how illnesses can creep up silently and kill us softly. But it’s a tad too late for her. She knows there is the reality of dying suddenly and when that happens, she has nothing to leave her kids. She regrets not getting one when she was still healthy and had no responsibility. Ten years ago, she had no need for life insurance. Ten years ago, that was the best time for her to buy a life insurance policy.
Her situation back then is what a lot of young people are going through now. They feel the same invincibility she felt. But times have changed. Lifestyles have deteriorated. More and more young people are contracting the illnesses that should only appear 20 or 30 years later.
Case in point, my college classmate passed away four years ago—due to stroke. I have also approached him and offered our products and services but his response was, “some other time.” Unfortunately, that “some other time” never came.
But health is just one consideration. What about the means? As young professionals, any bonus or salary increase is sheer joy. But before splurging everything, why not consider investing in one? It won’t do any harm. Having a high disposable is a result of little obligations relative to your age and situation. This period may not last long. Some are not even fortunate to be in this condition. Take advantage of it as early as possible. The luxury may not last forever.
Another client regretted that he should have gotten a life-insurance policy when he was just starting out. He had no dependents, and surely, also had no need for a million-peso coverage as what was presented to him. But he sure does now. Married and with two growing (read: costly) kids and his income stretched as thin as it can possibly be, he could only afford a fraction of what his needs should be. He still wouldn’t have gotten one if not for the accident that almost took is life. After that incident, he was faced with the reality that he can die any time. For him, his policy “still beats than having none at all.”
Just like any other product, an insurance policy is best bought when there is no pressure on your part. If there is, you might just end up getting a policy in haste but really doesn’t suit you, making you throw away good money.
Here’s an analogy. Why do a lot a lot of people apply for a passport even if they don’t have any plans of traveling at the time of application? It’s because they do not know when the need to travel abroad will come and they have to be prepared at all times. I still remember we had to rush our dad’s passport application because we need to fly to Hong Kong to attend my grandmother’s wake. Fortunately, it was released after several days. But that was 10 years ago. Now, it’ll take you months—three at least.
Buying life insurance is both an emotional and rational decision. You cannot buy based on pure emotions nor can you buy solely on analysis. It has to be a combination of both to get you the best policy you can have for yourself and ultimately, for your family.
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Kendrick Chua is a candidate for Registered Financial Planner (RFP) designation and a Certified Investment Solicitor. He is financial advisor for one of the leading financial institutions in the country. To learn more about RFP program, visit www.rfp.ph or inquire at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
