Life Insurance: Brain rot

Oxford University Press has selected "brain rot" as the word of the year for 2024.

This term reflects the supposed deterioration of an individual's mental or intellectual health due to overconsumption of trivial or unchallenging material (particularly online content).

Although the term "brain rot" was first recorded by Henry David Thoreau in 1854, its usage has increased by 230 per cent over the past year, reflecting growing societal concerns about the impact of digital media on mental well-being and behaviours.

Brain rot therefore raises significant concerns for the insurance industry, as the 2024 Insurance Barometer Study by Life Happens and LIMRA found that 59 per cent of people rely on social media to gather information about financial or insurance products.

It is also equally important for both prospective and current clients to recognise false information and debunk myths to safeguard themselves and their families.

Here are some tips to protect yourselves from insurance misunderstandings:

Check licences and credentials: You should verify that your advisor is licenced by the relevant authority to provide the necessary information.

You should also look for those with professional designations and memberships in reputable organisations.

Verify the source: You should always ensure that the information being sought comes from credible sources such as official websites or social media platforms, regulatory bodies or licenced professionals.

Schedule reviews: You should schedule periodic reviews of your portfolio with your advisor to ensure that you are adequately covered.

You should also use these sessions to address any questions or clarify the terms and conditions of your policies.

You should also confirm key details such as your sum insured, premium amounts and policy expiry dates to stay fully informed and prepared.

Report suspicious activity: If you identify false information, you should report it to your insurer or the relevant regulatory body to help combat any fraudulent activity.

Participating in activities that lead to "brain rot" can hinder effective financial planning, resulting in missed opportunities and increased vulnerabilities.

By choosing purposeful actions instead, you can build a stable and secure future for yourself and your loved ones.

As we step into 2025, I encourage you to take small but impactful steps toward ensuring long-term security and peace of mind.

Wishing you a safe and prosperous year ahead!

This column by Nutan Ragoobir, a senior insurance professional, author and founder of the Girmitya Foundation, will appear bi-monthly in Business Day.