Do scare tactics sell a term insurance policy?
Do scare tactics sell a term insurance policy? This is an interesting question about the most popular form of life insurance available in the insurance market today.
The whole point of a term insurance policy is to provide a death benefit payable to those that are financially reliable on the person whose life the policy is taken out on, the benefit can also be paid out upon the diagnosis of a serious illness. It is all about the ‘what if’ factor, ‘what if you die tomorrow?’, ‘what if you get seriously ill and can’t work?’.
It may sound as though the power of suggestion is enough to scare people into buying a term insurance policy as often they have absolutely no answer to the ‘what ifs’ that would match the benefit that a cash lump sum from a term insurance policy would bring.
So is it really scare tactics when there it is just stating facts and suggestion of the possibility that death or illness can as easily strike tomorrow as they can in 20 years time? I personally don’t think so. Considering most families that do not have a term insurance policy would be in big financial trouble should the main income earner die, such as losing their house and having little or no money to survive on, it is more common sense for them to have one.
It is in no way an unnecessary product pushed on them like many other insurance policies can be. If they are not aware of what a term insurance policy is or what it can do for them then having it explained may sound scary but this does not mean that they don’t need it.