The Airbag and the Insurance Policy: A Lesson That Still Resonates

Years ago, I attended a training seminar on Life Insurance that left a lasting impression on me. The speaker told a story so simple, yet so powerful, that it changed the way I viewed insurance — not as a product, but as a promise.

During the session, someone from the audience raised a question :

“Sir, how do I know the insurance company will really pay my claim?”

It’s a fair question — one that many people silently carry in their minds. After all, if a claim isn’t paid when it’s needed most, what’s the point of having insurance? Until that moment arrives, paying premiums can easily feel like a waste of money.

The trainer smiled and said,

“I understand your concern. Let me explain it in a way that might make sense to you. Do you drive a car? Or have you ever sat in one? Every car comes with an airbag.”

He paused, letting everyone lean in.

“When was the last time you tested your airbag?”

Of course, no one had. The only way to test an airbag is to crash your car — and nobody wants to do that.

Then he said something I’ve never forgotten:

“Insurance is just like that airbag. You don’t think about it every day, but when life hits you unexpectedly, it protects you from financial injury.”

That simple comparison made everyone in the room sit up and listen. Then the trainer went deeper, explaining that there are two main reasons why an airbag — or an insurance policy — might fail when you need it most.

1. Lack of Maintenance

If you neglect your car’s maintenance, there’s a chance your airbag may not deploy correctly. Similarly, if you don’t pay your insurance premiums on time, your policy could lapse.

Insurance, like a car, demands regular care. You have to do your part — maintain it, review it periodically, and make timely payments. When you fulfill your commitment, you can trust that the company will fulfill theirs. It’s a partnership built on mutual responsibility.

2. Wrong Fit

An airbag works only when it’s the right size and positioned correctly. Sit too close, and it could injure you; sit too far, and it might not protect you in time.

Insurance works in much the same way.

• Too little coverage, and it won’t protect your family adequately.

• Too much coverage, and you may end up overspending, straining your finances.

The right policy — like the right-sized airbag — fits your unique needs, lifestyle, and responsibilities. That’s why working with a trusted advisor matters. They help ensure your financial protection is balanced, not blind.

The Real Purpose of Insurance

That day, the analogy struck a deep chord in me. Insurance isn’t about profit or loss — it’s about peace of mind. You don’t buy it because you expect to use it; you buy it because you can’t afford not to have it when life takes a sudden turn.

We maintain our cars even when we may never crash. We should do the same with our insurance — maintain it even when we hope never to claim it.

Since that seminar, I’ve carried that story with me as a reminder that the true value of insurance lies not in its immediate returns, but in its assurance of protection when everything else fails.

So the next time someone asks, “What if the insurance company doesn’t pay?” I simply say:

“Keep your policy maintained, make your payments on time, and choose the right fit. Just like an airbag, it’ll be there when you need it the most.”

Insurance, at its core, is not about fear — it’s about responsibility and foresight. It’s the quiet confidence that even if life takes an unexpected turn, you and your loved ones will be protected.

That’s a lesson that continues to resonate with me, even years later.

Reflections from real conversations that shaped my perspective on life and finance.