Should we be commoditising life insurance?
There's been a long-term push to simplify life insurance, which I agree with in principle. However, in practice, this has some gnarly implications that those outside the industry don't appreciate.
Take, for example, medical insurance. You're not going to simplify medical insurance to cover everything; that would be too costly and result in things being paid for that probably shouldn't be. As a result, we have exclusions.
We have to take a sectioned approach, with what's covered overlaid with what is excluded. This makes it complex immediately.
A typical comment from those who don't know is: Why don't they state what's covered in a list?
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