A new lease on Life Insurance

Insurance is designed to protect ourselves, our loved ones, and the things we care about from unfortunate events — whether it’s the theft of a device, accidents at home, or even situations that require life insurance. The decision to insure something should be based on the risk it presents, which combines both the likelihood of an event occurring and the potential financial and emotional impact it could have.

However, we often buy protection for high-probability events with relatively low consequences, such as losing a phone or a computer. These devices, although valuable and essential for our daily routines, are exposed to frequent risks — even if the consequences are not especially severe when an incident occurs. In other words, it feels natural to protect what seems most likely to be damaged or lost.

In contrast, we tend to underinsure against low-probability, high-consequence events and overlook protecting what we simply cannot afford to lose — such as our health or well-being. While these events may be rare, the financial and emotional burdens they create can be substantial.

Even when we know insurance is important, our brains don’t always help us make the right choices. Instead of weighing risks logically, we often fall back on mental shortcuts and emotions that distort how we see those risks. Two of the most common tendencies help explain why we sometimes hesitate to protect what matters most.

1) Looking Through a Narrow Lens

When making insurance decisions, we often focus only on our immediate personal experience rather than considering the bigger picture. For example, if you’ve never had a major health issue or are young and healthy, it can feel like life insurance isn’t relevant to you. Similarly, if you’ve always been careful with your belongings, you may assume your gadgets don’t really need protection.

This narrow perspective can lead us to underestimate serious risks simply because they don’t show up in our day-to-day lives. But even if an event seems rare in our personal experience, its probability doesn’t disappear — it remains constant over time. Ignoring this bigger picture means, we risk leaving ourselves and our families unprotected from the most significant financial shocks.

2) When Stories Stick in Our Minds

Our decisions are also shaped by how easily we can recall vivid or emotional examples. If you’ve just heard about a spate of phone thefts in your city, that story feels close to home — making phone insurance seem urgent and necessary. On the other hand, if we don’t hear recent stories of severe health issues or natural disasters, those risks can feel remote or even irrelevant, even though the statistics tell a different story.

Because of this inclination, we tend to insure what feels emotionally salient — the everyday items we use constantly — and neglect coverages like health or life insurance, where the risks may be less visible but far more consequential. In reality, while you can replace a stolen phone with some inconvenience, you cannot replace the loss of income from being unable to work, or the protection your family would need if you were gone.

In sum, focusing too narrowly on our personal experience and being swayed by vivid but limited stories distort our perception of risk, making us overprotect against the small, frequent losses and underprotect against the rare but life-changing ones.

When it comes to protecting what matters most, it’s important to look beyond the small, replaceable things in our daily lives and think about the risks we truly cannot afford to ignore. Imagine the difference between losing your phone and losing your ability to provide for yourself or your family. One is inconvenient but solvable, while the other can be life-changing. Insurance allows us to bridge this gap — turning small, manageable premiums into protection against potentially devastating financial and emotional consequences.

1) Small Premiums, Big Protection (the Financial Perspective)

Think about how willing we are to pay for gadget insurance: a modest monthly fee to cover a phone or laptop. That same principle applies to life insurance, but the stakes are much higher. A relatively small premium can safeguard something far more valuable — your health, your income, your family’s stability, and ultimately, your life. Just as a small contribution secures your devices, a similar or even smaller investment can provide essential financial protection for situations where the losses would be truly irreplaceable.

2) Insurance is Peace of Mind (the Emotional Perspective)

Insurance is not just about money or statistics; it’s also about how it makes us feel. Knowing that you and your loved ones are protected from life’s uncertainties creates a sense of confidence and security, even when the future feels unpredictable.

The reassurance of having protection in place means you can focus on living your life, pursuing your goals, and enjoying everyday moments without the constant worry of “what if.” This peace of mind is not only about safeguarding your own wellbeing, but also about reducing the stress and anxiety for your loved ones, knowing that important needs — from maintaining a home to covering essential expenses — would still be met in difficult times.

These two dimensions — financial and emotional — go hand in hand. A small monthly price for your policy ensures bills can be paid, lifestyles can be maintained, and futures can remain on track. Being protected offers you priceless peace of mind and confidence, because it allows you to live more fully in the present, knowing you’ve prepared for the risks that matter most.

At Zurich, we are committed to making this protection clear and accessible. Our life insurance solutions are designed to safeguard what you value most, while also fitting seamlessly into your broader financial plan. With flexible products and expert guidance, we help you turn modest contributions into long-term security — so you can feel confident you are covered for both the small setbacks and the life-changing risks.