28 Argonaut, Suite 100
Aliso Viejo, CA 85254
It seems most people we speak with are focused solely on matching their current coverage limits and the cost of their insurance policies, and not the actual risks that they are trying to protect against. The various "Save X % in Y minutes" advertising has falsely framed personal insurance as a commodity, causing many consumers to focus solely on the cost of coverage. As a result, many consumers learn at the worst possible time—after an uncovered loss. The words used by product peddlers to lure them into buying a "low cost" insurance policy mean just what the peddlers intended them to mean: save money now/never mind the protection.
Of course, consumer obsession over the search for a "good deal" is not unique to the insurance industry. Carl Richards, the author of Behavior Gap, reminds us that consumer focus on product is exploited by those who are paid to sell product. He explains, "Most of us are trained to think 'What' first, because it's what you hear about all day long. But 'What' questions should come after we think about 'Why' and 'How’. Starting with 'Why' means achieving clarity about your insurance expectations and creating a plan."
Deceitful advertising that frames cost as the only factor in buying insurance has robbed consumers of the ability to ask the larger, far more important questions. Even simple questions like, "Why am I buying this insurance policy?" "Why buy insurance for your home, for your car, or to protect your assets from lawsuits?" The purpose of insurance is to transfer large losses from you to the insurance company, isn’t it?
If you start with the ‘why’ you can shift your focus to the reason why you buy insurance and to what extent you want it to protect you. Then you move to the ‘how’ to make sure that your policies will actually protect you or least know to what extent they’ll protect you. Now you can focus on the ‘what’ – finding the best price on coverage that you actually need.
When we review the insurance plan of a typical family, this is what we usually find:
This mixed bag of insurance policies has no coordination, is clearly way out of balance, and premiums are being poorly allocated. If anything were to happen if would be financially disastrous.
What's missing from nearly everyone's program is a personal risk manager or overseer, someone skilled in every area of insurance who can make sure that their plan is in balance, all the coverage limits are adequate, and all the major gaps are covered. And, of course, makes sure that the premiums as low as possible.
28 Argonaut, Suite 100, Aliso Viejo, CA 92656
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