One comment (now referred to as ‘the statement’) altered not just the trajectory of my career…but the trajectory of Glidewell as a whole.
Before I reveal ‘the statement’, allow me to, as they say in theatre, “set the stage.”
Many years ago, back in an unthinkable period where we couldn’t stream our favorite movies, have our groceries delivered to our home or ask Siri important questions like, “can I wear red socks with my orange pants?”, an insurance carrier we represented created a financial incentive for us to offer an umbrella policy to everyone we insured.
This seemed like a very good thing to me. What a win-win…everyone we insure could be even better protected (there’s no such thing as “too much” armor, is there?) AND we could make extra money.
I excitedly began calling clients when my enthusiasm took an abrupt halt after I reached my good friend Chuck. Because out of Chuck’s mouth came…‘the statement’:
“If you say I need a $200 umbrella policy, Paul, I’ll buy one. I trust you completely.”
Have you ever had a “perspective shift”? A moment where you view a scene or a belief or an understanding radically different than ever before?
That happened to me when Chuck said that.
I did not have a response. Did Chuck really need the umbrella?
He was trusting my counsel to make not just a financial decision, but a potentially major financial decision.
In that very moment, I committed, that I would seek out the answer to “need” vs. “could use” not just for Chuck, but for EVERY client at Glidewell.
But I began with Chuck.
First, I considered Chuck’s auto insurance. Yes…he definitely needed this policy. It’s not just about following the law…if Chuck were to slide on ice and cause an accident, the financial damages he’d be responsible for could be devastating.
Then I evaluated his home insurance policy. Well…yeah…if his burnt to the ground, this would financially devastate him. I’d call that a need.
What about his health insurance policy? A single extended hospital visit by anyone in his family could also financially devastate them.
Yes…Auto insurance, home insurance, and health insurance were all policies Chuck definitely needed.
Then I remembered Chuck had a life insurance policy and I thought, “wow…Chuck has a lot of policies through me…he IS a good friend!”
Whether Chuck needed his life insurance policy felt overwhelming, so I put that aside for the time being.
A boat policy? Nah…Chuck didn’t even own a boat.
The point is…insurance is complex. But thanks to Chuck, Glidewell has found three questions that will help guide our clients to which policies they “need” vs. “could us.”
Question #1: If “this” happened, would it financially devastate me?
If something bad happens and it wouldn’t cost you a lot of money, you don’t need insurance for it. Instead of paying an insurance company, it’s smarter to save that money in your own bank account, where it can grow.
Question #2: What are the chances this will occur?
Though we should first look at the exposures that would be financially devastating…most people do not have enough $ in their budget to adequately save for retirement AND insure against every exposure. So, there does come a point where the question needs to be considered, “How likely is this of occurring?”
Question #3: Do I need this policy for ‘peace of mind’?
Sometimes insurance isn’t strictly a necessity, but it can provide reassurance. If you’re already saving adequately, it’s perfectly reasonable to choose coverage simply because it gives you confidence and peace of mind.
In the end, I advised Chuck that based on his financial situation at that time, an umbrella probably wasn’t the best financial decision for him…but we should revisit it in a few years when both his finances and circumstances had changed (which we did).
Do you need an umbrella?
