Saturday, June 02, 2012

A Grossly Misunderstood Industry

I made a major life changing decision last year. I took the plunge and left a job that was stable. Against all odds and beyond my wildest imaginations, I decided to join the insurance industry.

Much like the communism ideology, I believe that the insurance industry is grossly misunderstood. Communism is the idea of a free society with no division or alienation, where mankind is free from oppression and scarcity. A communist society would have no governments, countries, or class divisions. It was a noble idea but somehow adopted and wrongly executed by the handful of infamous individuals in history. Likewise in the insurance industry, there can be black sheep as well. For the motive of earning more money, they sometimes recommend policies that might not be ideal or necessary to an individual.

But don't blame the insurance companies. The insurance idea works only when the law of large numbers come into play. All companies do business to make a profit, and insurance companies are no exceptions. Only when more people are inside a policy, then only will the risk on the insurance company be reduced. And because of the uniqueness of the insurance product, consumers don't usually walk into a shop and buy it. The only way insurance companies can get more customers would be to engage many salesmen, who will go out and sell these products. And the way to go about motivating them will be to pay out a significantly high commission such that these salesmen will be motivated and get more people, thus reducing cost and risk for the company, who may then bring on these cost savings to their consumers.

The reason why our grandparents and our parents didn't insure themselves in the past was probably because it was simply too expensive to buy insurance back then. It wasn't common back then for anyone to have life insurance and because of the law of large numbers, the cost for the company rises and so does the cost of their products. Fortunately, in modern times, majority of the younger people are already starting to realize the need for insurance. Most of the friends that I've approached have already policies on hand and I am happy for them!

There are many financial consultants that are in this line not because of the money, but because they have experienced the benefits of insurance and want to share their stories with everyone out there. I'll be entirely honest, I had my doubts about this industry. I didn't buy anything insurance nor did I want to spend a percentage of my income on it every month, because I couldn't see the benefits of it. But such is the uniqueness of the insurance product, you don't see the benefits until something happens! And when something do happen, it will probably be too late by then. Like the saying goes "You buy insurance not because you will die, but so that those that you love can continue to live".

My name is Nicholas and I am a financial consultant with Prudential. Help me fulfill my mission by contacting me if you haven't got anything, or if you are inadequately insured. My hp number is 98513124. You can contact me 7 days a week 24 hours a day and I wouldn't mind. On the contrary, I will be most glad to listen and help you out in whichever way I can. I will do my utmost to give you my best advice and to provide continued good service in the years to come.

I would like to end off by sharing a very meaningful advertisement. Click on the link below, I teared while watching it, hopefully you will too.

VIDEO