22 Oct 2015
When we think about the future, we tend to underestimate the likelihood of anything bad happening. The video below (2min06) takes a look behind the scenes of an experiment, where they demonstrate how the past can help us better prepare for the future.
We have an overwhelmingly positive view of the future and it is therefore difficult for us to picture negative events ocurring. This optimism bias can lead to under-insurance, because deep down, we may feel we just don't need adequate cover.
'Think about insurance as a win-win; every year you pay your premiums and don't claim, it's fantastic that you have lived through the year healthy, safe and without serious incidents', said Catherine Robson from The Age recently in Do we really need insurance?.
If you'd like more information about the different types of personal insurance, you can download our e-book about protecting your wealth. Or contact your Financial Adviser so we can help you find the right level of protection for your needs, and avoid being caught out by human nature's optimism bias.