Distrust Isn't Ignorance: Where Our Community's Wariness of Insurance Comes From

When someone tells me "I don't believe in insurance," I don't take it as an insult. I've been doing this for 15 years, and that sentence almost always comes with a story. Sometimes it's their own, sometimes it belongs to a father, an aunt or an old family friend. And it rarely has anything to do with not understanding how insurance works. It has to do with having seen what happens when it goes wrong. So let me say it plainly from the start: distrust isn't ignorance. It's memory. And our community has good reasons to remember.

Where the wariness comes from

Many of us grew up in places where institutions didn't keep their word. Banks that closed overnight, savings wiped out by a devaluation, companies that collected every payment on time and vanished when it was their turn to pay. If you grew up watching that, it would be strange if you trusted, right away, a stranger asking for a monthly payment in exchange for a promise about the future.

Here in the United States there are reasons too. These are the ones I hear most often when I sit down with a family:

• The friendly salesperson who signed you up and then stopped answering the phone.
• The fine print in English that nobody explained, and that ended up saying something different from what was promised.
• The "notario" or so-called advisor who charged for paperwork that never got done.
• The fear of handing over personal information without knowing where it goes or who will see it.
• The policy that got canceled over one late payment, with no warning in time.

What that distrust has protected you from

I want to be fair to that caution, because it has done real work. It has kept many families out of scams, away from contracts they didn't understand, and from giving their information to just anyone. Being careful is one way of looking after the people you love. It's not something to throw away.

The trouble starts when distrust becomes a door that stays shut no matter what. The risk doesn't go away because we avoid thinking about it. The average funeral in Texas costs around $9,200, according to the NFDA, and the quotes I've personally seen run from $4,000 to $18,000. When nothing is in place, someone in the family ends up paying that bill, often with credit cards, loans or a collection among relatives.

Distrust isn't ignorance. It's memory.

How to distrust the right way

• Are you licensed in my state? Ask for the number and look it up with your state's insurance department. Mine is TX Lic. #3008095, NPN 17440153.
• Which company backs this policy? The agent is not the insurer, and you have every right to know who pays.
• What happens if I'm late on a payment? Ask before you sign, not after.
• Who receives the money? With final expense insurance, the money goes straight to the beneficiary you choose.
• Can you explain it to me in Spanish, in writing, without rushing me? If the answer is no, that tells you what you need to know.

What I do differently

I won't ask you to trust me just because, and I won't tell you the offer ends tomorrow. I'll walk you through what each option covers, what it doesn't, and what it costs. Final expense coverage starts at $30 a month, with no medical exam, for ages 30 to 85, and it accepts common conditions like diabetes or high blood pressure. Approval usually takes about 48 hours. All of it is subject to approval and varies with your age and health, and I'll tell you that straight. If after we talk you decide it isn't for you, that's fine. I'd rather have a well informed family than a badly sold policy.

Coverage is subject to approval and varies by age and health. Mario Barrera is a licensed insurance agent (TX Lic. #3008095, NPN 17440153) in Texas, California, Florida, New York, Illinois, Arizona, Virginia and Maryland. This article is for educational purposes and does not replace reading the terms of your policy.

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