The three step mindset to buying insurance

BY ANDREW STEWART

The emotions involved in seeking and purchasing insurance are in direct conflict with the cold transactional nature of the process.

Before I started advising families and businesses about retirement planning, post-secondary savings for children and the importance of life insurance, a close friend who was my advisor said, “It’s not cheap, but you need to do it.” He advised me on which provider to use, began the paperwork and explained the application process. While I didn’t look forward to the cost or the administrative aspects of applying for life insurance there was something oddly fulfilling about it.

Insurance isn’t a fun topic or process, but it represents completing a significant milestone in our lives, such as purchasing our first car, having your first child, marrying the love of your life or buying your first home. My reason was, I had a family now and was ready to think about someone other than myself.

I believe it is very important for all of us to take the time and effort to address specific emotions, mindsets and actions when it’s time for us to purchase insurance. While purchasing insurance involves cold transactional elements such as policies, premiums, risk and assets the process can still be very personal. This is why I believe the first mindset to buying insurance is:

Understanding what emotion you want to have or what emotions you’re trying to eliminate

Purchasing life insurance seems like a “no brainer,” so why don’t more people do it? Decisions around life insurance can stir up negative emotions because of the nature of the topic. Maybe you want the feeling of security and transactional obligation to protect the mortgage on your home. Maybe you’re looking to change the habit of being irresponsible and want that feeling of doing the right thing for your family. Maybe you have a memory or have seen a family go through losing a loved one and it stirs something up inside. Whatever that feeling is write it down, own it and make that your first priority to solve.

The mindset of obtaining knowledge

This second mindset is important because it gives you the confidence and ammunition to tackle the process ahead. Like a gun is useless without bullets, so is absence of knowledge towards making a major decision. Try and remember the last time you had a serious problem to deal with. What level of urgency and brain power did you commit to solving it? If we take that same mindset towards obtaining some information and knowledge about the type of insurance we are looking for, it will help tremendously. The knowledge can come from any source you’re most comfortable with. Research online about what it is, why to have, where to get it, stories about other people, families or businesses that relate to your feelings and situation. Find and speak to a licensed professional that resonates with you. Avoid just going on the advice and recommendations of friends and family even if they are in the business.

The mindset of movement and finish

The first two steps are easy compared to this one. We all get that surge of energy when we have a task and you tell yourself today is the day to get it done. Sometimes just the thought of having to do #1 and #2 causes paralysis and we put it off for another day. Getting started could be the most difficult part for many people. For me, finishing is the most difficult. I have no problem analyzing, researching and starting to form a plan, but the time it takes to finish could take days or even weeks. When reviewing online applications 90% of the questions focused on coverage requirements, medical and health assessments. Meanwhile, only 3% are positive in nature. Remember the goal is to cross the line and finish the race. That feel good feeling you’re trying to obtain or that fear you want to go away from #1 only happens when you finish.