Friday, June 7, 2019
Testing the Hypothesis Part 2
Who: Through my interviews I realized that although people have common factors that should bring them together to create the market for this service, people will always fall outside the boundary. People will always rely on the government and social security for their future. The 'American Dream' has fashioned peoples sense of thinking into one that relied on the government for their future of health causes and their future as a whole. I interviewed two millennials who were both in the same stage in their life. One of them obviously so hard headed in her political views on governmental aid, she completely denied the facts about social security and the horrible connotations faced with 401ks that people don't feel the need toss till later date. The other millennial was focused on her independent future and any tragedy that could happen at any moment. Clearly they were the same type of person, but have different ideologies on life.
What: With many interviewees I realized this stretched farther along than just ideas and what not. The need I have identified is mostly monetary and planned for the future. However, some have different priorities and would rather focus their assets into going out, paying for more expensive cars, better lifestyles, and different things that wouldn't allow them to get life insurance that would ultimately benefit them.
Why: I believe the reason people are outside of the boundary is because they do believe in something different. When it comes to money and having to pay a monthly premium or a one time premium that is a large compromise, people would rather scare away unless they believe in extremely hard.
Inside the boundary:
Who: Any Age range of people who believe in the need to protect their future from fiscal torment, death, or horrible tragedy that would affect them for the rest of their life.
What: The need is an insurance policy that is customized to help people who are in risk financially. By being at risk financially, it means to not have a stable plan for the unpredictable future.
Why: The need exists because of people being in denial of their mortality. People do not feel that any given moment something tragic could happen to them, and financially they are not prepared for the high costs it comes with.
Outside the Boundary:
Who is not: People with the ideology that government will provide for them and they do noted to worry about their future because they are so young. As well as those who believe they have enough money saved up without having to opt in for a life insurance plan that could secure the for the res of their life.
What: The need is not a savings plan designed to put money away for a while. It is not a social security plan or a 401k designed to put a certain portion of their paycheck in.
Alternative Explanations: People believe social security is able enough to help them in the future and they can rely on their own saving methods to protect them from catastrophic events.
What: With many interviewees I realized this stretched farther along than just ideas and what not. The need I have identified is mostly monetary and planned for the future. However, some have different priorities and would rather focus their assets into going out, paying for more expensive cars, better lifestyles, and different things that wouldn't allow them to get life insurance that would ultimately benefit them.
Why: I believe the reason people are outside of the boundary is because they do believe in something different. When it comes to money and having to pay a monthly premium or a one time premium that is a large compromise, people would rather scare away unless they believe in extremely hard.
Inside the boundary:
Who: Any Age range of people who believe in the need to protect their future from fiscal torment, death, or horrible tragedy that would affect them for the rest of their life.
What: The need is an insurance policy that is customized to help people who are in risk financially. By being at risk financially, it means to not have a stable plan for the unpredictable future.
Why: The need exists because of people being in denial of their mortality. People do not feel that any given moment something tragic could happen to them, and financially they are not prepared for the high costs it comes with.
Outside the Boundary:
Who is not: People with the ideology that government will provide for them and they do noted to worry about their future because they are so young. As well as those who believe they have enough money saved up without having to opt in for a life insurance plan that could secure the for the res of their life.
What: The need is not a savings plan designed to put money away for a while. It is not a social security plan or a 401k designed to put a certain portion of their paycheck in.
Alternative Explanations: People believe social security is able enough to help them in the future and they can rely on their own saving methods to protect them from catastrophic events.
Solving The Problem
The Problem
In my recent blog posts I mentioned there is a problem in how people are in denial of their mortality. By saying this, people do not feel the need to protect their assets or their hard earned money. This is a growing problem for the gigantic growing population of retired baby boomers and the big amount of millennials finally entering the work force. Both have the same problem but at different times in their life. At any moment, even 50 years apart, either one of these class of people can have something as tragic as death happen to them and everything they worked for in their lifetime is dropped into the abyss, as if they never did anything.
The Solution
I have though of offering a service of life insurance that is affordable for every age and truly aims to help people other than offer a commission to the agents selling it. One of these examples would be for low-middle income household with a married party with children. One of the questions for their customized plan would be to ask both working parents how much they would need for the rest of their life to live as if, if anything happened to either one. This is how my service would impact their life completely and change their view of life insurance completely.
However, if the plan was for a millennial, the idea in their head would be they had a 401k and a social security to get them by if anything happened or if they had a loved one to help. The fact of the matter is that even with social security, which is dying out with these huge amount of baby boomers retiring 10000 a day, and with their 401k if anything tragically happened to their health they would not be able to afford it. Now the burden falls on their parents and the people who worked all their life to protect their future have to focus on their child they have already voted 18 years of their life to. Understandably, millennials are already struggling to pay normal bills, but with the proper prioritization in what they need and planning for their future, they will be able to prevent tragedy fiscally and emotionally not as bad.
The life insurance policy is not to offer whole life, ammunizations and boring old policies that people have negative connotations, but to be the broker and provider of customized insurance for everyone. Because in reality, everyone needs it.
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