SPOILER ALERT – Watch video before reading further!!!
The video shows an interesting perspective and just under 4 minutes.
Financial products like insurance and investments are full of statistics and often based on probabilities, so I pride myself on understanding those elements of the industry and finding “value” for clients. Hopefully I can articulate some of this “value” to clients.
The video has an interesting term – “Random Sucky Things”. In the insurance world, we are great at using statistics and probabilities to make the case for purchasing insurance. (Remember “Lies, Damn Lies and Statistics”).
For example, we said there was a 1 in 1,200 chance of someone’s house burning down. That means 1,199 families don’t really “need” insurance.
But for 1 family, it is devastating, emotionally and financially. This “Devastation for 1” principle applies to basically all types of insurance – life, disability, travel, critical illness and on and on and on. And no one knows who will be the “1” to suffer a “Random Sucky Thing”.