Having health insurance can mean the difference between life and death, but why are still so many people uninsured? If you’re selling health insurance policies for a living, it’s imperative that you know why people want health insurance, as well as why some people refuse to buy it. In this way, you can better understand your market and offer solutions to those who don’t or can’t buy health insurance.
Before you consult with a reliable health insurance FMO, here are the common reasons people don’t buy health insurance that you should know first.
1. Insurance is too expensive
The most common reason why people don’t buy health insurance is that they can’t allot money in their budget for it. “It’s too expensive,” “I can’t afford it,” “I have a lot of other bills to pay,” are the usual excuses heard by many health insurance brokers. However, medical care without health insurance is extremely expensive, and in worse cases, an illness or an injury can even cause bankruptcy or at the very least, incredibly high amounts of debt.
This sounds scary, but it is a fact of life. Medical care is too expensive to pay out-of-pocket, and having health insurance is the best way to avoid getting buried in debt because of hospital bills.
2. I don’t need health insurance right now
Some uninsured people say, “I’m healthy and am unlikely to get sick right now, I don’t need health insurance yet.” This, of course, is an extremely negligent assumption that can bury someone in mountains of debt when they do get sick or get injured. Even if a person does not develop an illness that requires high costs of medical care, they are never 100% safe from accidents that can cause catastrophic injuries.
Buying health insurance is best done when a person is young and healthy. Not only are premiums relatively low, but it is also easier to get approved for insurance when a person is not considered high-risk. If they decide to get health insurance when there are already significant health risks present, they may have trouble getting approved, and will likely have to pay higher premiums when they do get health insurance.
3. I have other financial responsibilities
“I have too many bills to pay to worry about insurance,” “I’m saving up for something else e.g. retirement, business, etc.” We all have a lot of financial responsibilities to take care of, but paying bills or debts is going to be a lot harder when one is also burdened by astronomical medical bills. If the consumer is also saving up for something big (e.g. down payment on a house or a vehicle), an untimely illness or injury can drain those savings up quickly.
So even if it may be an extra burden to pay for health insurance, it provides a financial safety net in case an individual gets sick or injured.
4. Health insurance does not cover all of my needs (now and in the future)
Good health insurance plans cover almost every medical condition that is foreseeable. Hence, the thinking that health insurance does not cover all of one’s medical needs that they have now or might have in the future is ignorant.
If a potential client believes in this statement, the best way to convince them otherwise is to show them comprehensive insurance policies that provide a wide range of coverage.
5. I don’t trust health insurance companies and/or brokers
Some uninsured people stay uninsured simply because they don’t trust insurance companies and/or brokers. Common sentiments include “The insurance company won’t pay out when I need them to,” or “Insurance companies are just gambling and banking on the fact that I won’t get sick or die in the next 20 years.” Public trust in insurance companies is slow to grow, and one of the main reasons for that is misinformation.
A lot of uninsured people have misconceptions about health insurance because they don’t know much about it in the first place. They haven’t read or did not understand the policy in its entirety. As a result, what they expect might be different from what they are covered for.
That said, the best way to build a bridge between consumers and insurance companies is to educate the former about insurance policies thoroughly. When they know how it works and what they can expect, they will be more likely to trust their insurance provider, broker, and more importantly–their insurance policy.
These are just some of the common reasons why people refuse to buy insurance. As you can see, a lot of them are stemming from a lack of financial literacy, as well as low awareness of how health insurance works. As a broker, you can help potential policyholders realize the importance of health insurance by showing them what it would be like without health insurance when they really need it.