“No, no, no!,” “It’s ok,” “Sorry, I am busy.” These are some of the common phrases that a prospective client would say to a financial planner when being approached – be it on the streets, in residential areas, or upon receiving a call.

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Throughout my time as a financial planner, I have seen and experienced it all. The constant rejection  – even to the extent of rudeness! – hurled in my direction would certainly affect the morale of anyone doing sales. But as it is all about the law of large numbers, one has to have utter perseverance and sheer determination to at least get one person to sit and listen to what a financial planner has to say.  So why is it that people tend to veer away from the subject of financial planning and insurance? Why are these topics often considered taboo? Why do most people have their shields up and have the tendency to procrastinate on this?

Here Are The Top Five Reasons Why Most People Avoid Financial Planning

Bad Experience With A Previous Financial Planner

There  is  no  denying  that  there  are  some  bad  apples  out  there  who  tarnish  the reputation  of  financial  planners  in  being  dishonest  and  pushing a  product without considering the needs of the client – just to make a quick buck. However, the  responsibility  of  a  financial  planner  is  to  make  known  to  the  client  their current  financial  standing  and  based  on  their  needs,  recommend  a suitable product that would at least narrow the gap of their shortfall towards attaining their goals. If a financial planner can demonstrate that they are not doing this just for the money but to build trust and foster good relations, then I believe the masses will be willing to sit and listen.

Lack Of Knowledge On Financial Planning And Insurance

Apart  from  the  people  who  have  experience  and  knowledge  in  finance, most  people  are  bewildered  by  the  range  of  products  that  different  insurers have  to  offer,  so  much  so  that  they  cannot  be  bothered to avail what  is necessary for them – and rely on hearsay from friends or relatives regarding what is “good” and what  is  not  without  seeking  proper  professional  financial  advice.  Some even buy products without understanding the benefits and limitations of a product, just for the sake of supporting friends or relatives who are in the insurance industry.

Not Enough Money To Invest In Insurance

It can be understood that if one simply is not earning enough, is unemployed, or is working a simple job, they may not have the financial means to invest in insurance. But by looking at the majority of the population which falls under the mass affluent category who would rather spend on a want rather than a necessity, it is not surprising that there is hardly any money set aside for investing in insurance.  Most millennials today are also guilty of this,  with the constant pressure of today’s society and the pursuit of materialism.

Thinking That The Coverage They Currently Have Is Adequate

This is the most common objection for most people who already have invested in insurance  products. It is fantastic that they have invested in them – this shows that they believe  that coverage  is necessary  in dire times. However, studies have shown that in order to really be adequately covered and have peace of mind, based on the current salary and earnings of an individual and taking into consideration inflation and other economic factors, there is always a gap falling short of achieving their  financial goals.  Hence,  it is crucial to be open and willing to listen to a professional financial  planner whose role is to help bridge the gap.

Lack In Belief That Insurance Is Necessary

In a  way,  insurance is a  form of risk management.  Risk surrounds  us day in day out. We cannot predict the future and its events. There are risks that we just simply cannot afford to retain. Most people do not see the need for getting insurance until  it is too late. Witnessing a  loved one and sole breadwinner passing on due to an infectious disease, leaving inadequate funds for the living to continue their daily routine or passing on penniless because of not planning well for retirement are some of these unnecessary risks. By setting aside funds to “risk managers” also known as insurers, they help manage the risk.

Perhaps the only way that these reasons for avoiding financial planning can be expelled is through constant education and adjusting of mindset and attitude. Financial planners  are not  the enemy,  but friends  who are  determined to  help everyone attain a financial peace of mind.

So the next time a financial planner approaches you,  give  them a  chance to  lead you  towards achieving  your financial goals.

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