Transactional relationships are potentially ruinous because they hide what you aren’t getting behind stuff that doesn’t matter. The game becomes winning the transactional experience, not providing something meaningful. The worst: you pay us less to give you something you think you have to have. Second worst: I want good customer service. The reason these are wrong is because if I can convince you of these two, you may not think to realize that you’re buying garbage.
Proof? There are two insurance commercials on TV today that promise low premiums while using examples of scenarios not even covered by the policies they sell. That’s unbelievable to me. And one of the highest rated insurance companies out there has some of the biggest gaps in coverage.
I think the overarching lie is that defending your family against potential financial calamity can be solved by making a purchase. No. Defending your family starts with a list of thoughtful questions, not your checkbook. Defending your family depends on a plan that you’re involved in making, not something that comes off the shelf and handed to you. Defending your family depends on wisdom gained, not by falling for superficial gimmicks.
I think insurance is important and I’m not critical of the product. But there needs to be someone championing the truth that buying insurance is incomplete. It doesn’t prevent the bad day, it doesn’t answer when it’s better to NOT buy insurance, it doesn’t offer anything until you have the bad day, and it’s limited in the scope of help it can provide. The insurance transaction is just playing a role, not telling the whole story. So look instead for either a more complete relationship from your insurance expert than just a transaction, or find a complementary relationship that can do more than the product can.