Understanding the problem Frankly Simple was built to solve

Imagine sitting across the table from someone explaining your insurance policy.

They talk about life cover, disability benefits, waiting periods, exclusions, premiums, riders, and underwriting.

You listen carefully.
You nod.
You sign.

But if someone asked you afterwards to explain what you just bought…
would you really be able to?

For many people, the honest answer is no.

And that’s not because people are careless or unintelligent.

It’s because insurance is often communicated in a way that is unnecessarily complex.

The Hidden Problem in the Insurance World

Insurance is one of the most important financial tools a person can have. It protects families, income, homes, and futures.

But despite its importance, research consistently shows that most people struggle to understand their policies.

Studies have found large gaps between what people think they understand and what they actually understand.

For example:

• A consumer survey found that many policyholders believe they understand their coverage, but struggle to correctly identify what is actually included when tested.

• Research has also shown that only around 29% of life-insurance customers strongly agree that insurers make policies easy to understand.

• In another large survey, 65% of policyholders admitted they had limited understanding of key details like exclusions, benefits, and claims processes.

In other words, many people own insurance…
but don’t fully understand what they own.

Why Insurance Becomes So Confusing

There are several reasons for this.

1. Financial jargon

Insurance policies are legal contracts. That means they often contain terminology like:

• exclusions

• deductibles

• underwriting

• waiting periods

• riders

• premium escalation

For professionals in the industry these words are normal.
For the average person, they can feel overwhelming.

2. Complex policy documents

Policy documents can run dozens of pages long and are written primarily for legal precision, not everyday readability.

While accuracy is necessary, it can make policies difficult for non-specialists to interpret.

3. Information overload during decisions

When people purchase insurance they are often asked to make multiple decisions at once:

• How much cover do you need?

• What type of cover is appropriate?

• What waiting periods apply?

• What exclusions exist?

Without clear explanations, these choices can feel like guesswork.

The Consequence: People Avoid the Topic

When something feels complicated, most people do one of two things:

1. They avoid it entirely, or

2. They make decisions without fully understanding them

This is risky when the topic involves financial protection.

Insurance exists to protect people from major financial shocks — events like illness, disability, accidents, or death.

But protection only works properly when people understand what they have and why they have it.