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I recently listened to a podcast that guest-starred Elon Musk.

It was a fascinating 2-hour roller coaster ride that provided some real insight into what life is probably going to look like in the next few decades. If the internet was faster (that’s the only limitation) we might already be living in some type of altered web consciousness that super-computed our mental abilities and allowed us to engage with one another in ways only a psychedelic sci-fi movie scriptwriter could conjure up.

Why bring this up?

Being ushered into a new decade had me contemplating a few things over this festive season.

It doesn’t feel like that long ago when I had a backpack on and was bumming around the Middle East and Europe earning a living working as a farm labourer. I used to write letters and post them back home to friends and family, and once a week I called my folks from a tiki box at the end of the main road.

If they happened to be at home when I called, they picked up. If they didn’t, I tried again the following week.

All of this was only 25-years ago. Then the internet happened, Steve Jobs worked out how to put a computer in our hands, and the rest is history. Can you imagine what life is going to be like in 25-years from now? Technology has brought about wonderful innovation, but it’s also allowed very smart marketers, who used to be at arm’s length, the opportunity to get very close to us and pull our emotional strings.

If you are online you are being marketed to left, right and centre.

And this is how it works:

  • A plethora of seemingly wonderful insurance products
  • Are marketed directly to you in hyper-personalized marketing messages
  • Via channels you spend hours on each day (like Google and Facebook)
  • Pulling emotional strings that marketers know work
  • And you buy more insurance that you probably don’t need

Sound about right?

Then we feel some buyer’s remorse and cancel the insurance we’ve just spent time, and perhaps some money on, before getting hit with the next message that says, “We are the best and this is specifically for you”. Stop wasting your time and money constantly taking out (and then cancelling) your insurance policies.

The reason why you are doing this is because you haven’t worked out what you need the cover for, in the first place, and you are getting caught by too many smart marketing messages.

What if I told you that all insurance products serve the same purpose and that the only thing that separates one policy from the next is the slight nuances smart marketers come up with to give themselves a competitive edge.

Insurance policies are designed to cover risk.

That is the only purpose they serve.

What many of us fail to do, is to identify the risks we want to cover. That would be the best starting point.

Please do yourself a favour now that it is the beginning of the year – It doesn’t matter if you have a portfolio of uber-comprehensive insurance policies or just starting to think about buying your first.

Take the time to answer these 4 questions honestly. We’ve just chosen these 4 questions, but obviously, if you are self-employed or if you have a pet, for example, there are other questions you would need to ask yourself and policies to cover these risks.

The answers to these below questions will determine if you have a risk you need to cover, and that will lead you down an insurance policy purchasing journey.

  1. What happens to my income if I become disabled and I can’t work?
  2. If I die, will my family be able to support themselves financially?
  3. If I get sick, do I have enough money for treatment and hospitalisation?
  4. How much of the stuff in my life is owned by the bank, and what happens if it gets stolen or damaged? (like your car)

In the next few blog posts, we will cover what happens when your answers to these questions are YES, but for now, these are the insurance products that match up to these questions.

  1. Salary protection/disability income
  2. Life cover (and perhaps funeral cover)
  3. Medical aid or health insurance
  4. Short term insurance

Remember that the take-away from this blog post is the following:

It’s easier than ever before for marketers to reach you with very personalized messaging. That isn’t necessarily a bad thing if you understand the risk you need covered before you reply YES, click for a call-back for buy anything online.

The InsuranceFundi Team

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