We’ve all heard of the phrase pride comes before a fall.
A longitudinal study on this has provided several points to think about. From a financial planning standpoint, it may offer insights into the type of people that should take up life and disability insurance. Elson Goh, from EG Financials Services, joined Mike to explain.
A study by the British Medical Journal of 6,500 older adults found that even after adjustments made for age, sex, household wealth, and history of falls, pride does NOT come before a fall. In fact, high levels of pride were associated with a 31% reduction in falls. Even though you may question their measurement of pride, it raises some important questions. Should the importance of insurance cover change according to our pride levels?
“If they (the insurance company) load your policy up it’s a good thing…For example if they think you are risky and they say I’ll double your premiums, that’s actually a good thing…but the bad news is you cannot get any form of cover…you’re uninsurable.”
Let us know your thoughts by texting or messaging us on socials. Listen to the full chat below!