[Kim Seong-kon] Are you insured for emergencies?

In the U.S., insurance seems to be an imperative prerequisite of human existence. The American people are well-known to be thoroughly prepared for a rainy day and thus have various contingency plans for emergencies. Compared to Korea where people are more optimistic and thus do not feel compelled to be insured, the Americans’ fondness for (or obsession with) insurance seems somewhat excessive and redundant. 

Americans seem to think they need an insurance policy for virtually everything. For example, automobile and health insurance are basics in the U.S. You need them as long as you exist, for you cannot survive without a car or your body. But that is just the beginning. When you rent an apartment, you are often required to buy a renters’ insurance policy. When you want to purchase a house with a bank loan, homeowners’ insurance is mandatory.

When you buy electronics at Best Buy, the cashier always ask, “Do you want the Best Buy protection plan? If you purchase the store’s insurance plan, the merchandise can be insured for two to four years.” An electronic device entails a one-year manufacturer’s warranty. Still, however, you may need additional protection just in case the electronic device breaks after the manufacturer’s warranty expires.

At the same time, however, electronics may still be as good as new long after the manufacturer’s one-year warranty expires. Then you are wasting money if you purchase the store’s back-up plan. So buying a warranty is like playing the lottery or gambling, in essence: “double or nothing.” That is why whenever I am asked by the cashier whether I want to purchase the store’s additional protection plan, I hesitate, agonizing, “To buy or not to buy, that is the question.”

The other day, I bought an electronic home appliance at Home Depot. The Home Depot salesperson told me, “Do you want the Home Depot protection plan?” “No thanks,” I answered instantly. “But it’s only $90 and covers the item for five years,” he persisted in a friendly way. “Less than twenty dollars a year, and you will be protected. You don’t go to a restaurant once, and you will be insured. It may not be a bad choice at all.” It was surely a tempting and persuasive pitch. But I declined. After all, I was a Korean, not an American. Koreans do not worry about the future. Koreans think that it is not manly to be meticulous, cautious, or prepared thoroughly. In an emergency, one should be able to improvise in Korea. But I saw my fellow American customer, who looked tough and manly, purchase the protection policy without hesitation. As an American, he naturally wanted to be prepared for a rainy day.

Another reason why you need a store protection policy in America is because of the inconvenient warranty system. In Korea, you can always ask a technician to visit your home to repair your broken electronics free of charge during the warranty period, granted it is not an imported product. Even after the warranty expires, you can still ask for a technician house call as long as you pay for the labor and parts. In the U.S., however, you need to send the broken item to the manufacturer by mail, and wait a long time for delivery, which is really annoying and time consuming. Especially when the broken item is huge, heavy or fragile, like a fridge, a washer/dryer, or a 48-inch TV set, shipping is almost impossible. That is why you may need an extra insurance policy. You can just bring the broken product to the local store, and their technician will take care of your problem. Besides, the lifespan of electronics is rather short these days, in contrast to the 1960s or 1970s when manufactured home appliances were quite durable and could be used as if you had a life-time warranty.

In Korea, still many homeowners do not have a home insurance policy. When misfortune comes and their home is destroyed in a fire, for example, Korean homeowners cry copiously and even pass out in shock and despair. In the U.S., however, insured homeowners are entitled to enough compensation from their insurance company that they can rebuild their house. Of course, it is more than sad and inconvenient to lose your home and all of the precious things and memories inside of it. Yet, American homeowners do not have to despair.

In international politics, South Korea, too, needs a very good insurance policy. Situated precariously among China, Japan, Russia, the U.S., and hostile North Korea, South Korea needs a variety of contingency plans and protection policies. Metaphorically speaking, our initial manufacturer’s warranty has long expired, and we urgently need additional insurance programs and protection plans.

But do we have such contingency plans and double protection policies? Are we eagerly fostering and supporting experts on the above-mentioned countries? Are we prepared for international crises? Aren’t we much too optimistic about the future, naively believing that no crisis or disaster will happen to us? Isn’t it wise to be doubly or triply insured just in case?

By Kim Seong-kon

Kim Seong-kon, a professor of English at Seoul National University, is editor of the literary quarterly “21st Century Literature.” -- Ed.