Van Mayhall of Insurance Regulatory Law hosts this week’s Cavalcade of Risk – be sure to head over and check out all the best of the risk-related blog world. One of my favorite posts in this edition comes from Russell Hutchinson of Chatswood Consulting, writing about why life insurance is so hard for consumers to purchase. Russell sums things up perfectly. I’d say that his points also apply to disability insurance and long term care coverage as well. Perhaps disability and LTC insurance are even harder to buy, probably because they tend to be more expensive than a basic term life insurance policy. And even more difficult for most people to imagine using. Although becoming disabled or needing some sort of long term care are actually relatively common, most of us can’t picture ever being in that situation.
Insurance just isn’t that much fun to buy, period. It’s a product that we purchase while hoping we never have to use it, and if we ever do have to use it, things aren’t going so great. Having insurance does contribute to our peace of mind though, and that’s valuable in and of itself.