“The great ones separate truth from fact.” (1)
This is how mental toughness expert Steve Siebold describes the role perception plays in how we view the world:
Champions use their critical thinking skills to make a clear distinction between truth and fact. Fact is reality. Truth is our perception of reality, and perceptions are subjective. One person perceives giving to charity as an expense, while another perceives it as an investment in someone else’s life.
For me, this statement explains in a nutshell why very wealthy people will gladly buy huge amounts of life insurance. Does the policy cost a lot of money? Sure. Will creative financing be needed sometimes to leverage assets and pay for the premium? Could be. At the end of the day, the purchase is still a bargain. Each dollar of benefit still costs only pennies.
You could simply appreciate life insurance as an economical way to secure an amount payable upon the death of the insured, and in reality, you would be right. But looked at from a broader part of view, the benefit is a “gift from heaven.” It can help surviving family members live long and prosper. It can secure the continued success of the insured’s business. It can fill the coffers of numerous charities to help multitudes of people.
Factually speaking, life insurance is a good financial deal. In truth, it is a gift that keeps on giving.
(1) Steve Siebold, “177 Mental Toughness Secrets of the World Class,” London House, pp 29-30