Ever Plan to Get Life Insurance But Never Quite Follow Through?
We've all been there, caught in the cycle of good intentions: planning to buy life insurance but never quite getting around to it. It's a common story and if it's yours, you're far from alone. This hesitation isn't just about procrastination or neglect; there are underlying psychological reasons at play that we're often not even aware of.
Normalcy Bias: Why We Assume 'The Usual' Will Continue
A concept known as normalcy bias
can lead us to believe that things will always remain the same. Because life has been relatively smooth so far, it's hard to imagine needing insurance for those 'just in case' moments. We often skip buying life insurance because we assume that life will continue without disruptions.
Cost Misperception: The High Price Tag That's Often Imaginary
Then there's the matter of cost misperception. Did you know that 72% of Americans overestimate the cost of life insurance? It's a real roadblock. Many of us assume policies are more expensive than they actually are, leading us to shy away from even considering it. In reality, policies can often fit into a range of budgets more easily than we think.
Optimism Bias: Believing 'It Won't Happen to Me'
Another sneaky mindset is the optimism bias. It's the tendency to believe that we are less at risk than others for serious life challenges, such as illness or death. We convince ourselves that we’re invincible, leading to delays in making precautionary decisions, like purchasing life insurance.
Understanding these common tendencies is the first step towards overcoming them. Recognizing these biases allows us to take more informed and confident steps towards securing our financial future. Whether considering a quote, researching policy options, or simply starting a conversation about life insurance, the first step is always the hardest.