Buying insurance is not something that most people think of until the time comes that they need it. Indeed, there are several myths out there surrounding the concept of buying insurance that clouds most people’s decision of getting one. Learning about what these myths are and the truth behind them will give consumers a better idea on why insurance is very important.
You can learn about the top ten myths in full detail below.
1. You need to buy every single type of insurance to ensure protection. Insurance policies are designed to provide maximum protection to consumers for natural or catastrophic disasters. The general rule of thumb: pay for insurance to avoid financial hardship whenever possible, and if you can afford it. However, it is not smart to purchase every single insurance type because it might cost you more in the long run.
2. You are not the beneficiary of a life insurance, but those who are dependent of an individual. This is true for children or elders who are incapable of producing their own income, which also makes life insurance very important.
3. Only the breadwinners need to get a life insurance. There are many costs involved in the care and growth of an individual, which makes it all the more worthy of securing a life insurance for them. If you can buy insurance for every member of the family, then the better and smarter move for you.
4. Universal life insurance is the best. Most people secure this kind of life insurance thinking that they will get their money back. However, there is a specific term for the insurance, such as 10-30 years. It is therefore smarter to go for a specific life insurance instead of going for the more expensive universal life insurance.
5. Only those who live in high risk areas need flood insurance. Natural disasters are most dangerous because there is no way to predict when and where they will happen, which is also why insurance for natural disasters is important for everyone.
6. Your auto insurance policy will cover all aspects of damage or accident involving your family vehicle. Make sure to look into specific terms, policies, and coverage for your chosen auto insurance or else you might be paying your premium for nothing.
7. Disability insurance will be covered by the social security. This is another common myth on insurance because social security does not often cover disability benefits and even if most of them do, you cannot gain access to these benefits right away.
8. Nursing care is paid for by the government, so why should I get my own insurance? Another common myth and one that could potentially be risky. Even if the government will provide assistance, they will not cover for your personal needs and costs for nursing facility, when needed.
9. Opting for umbrella insurance coverage is ideal only for the rich people. Opting for this type of insurance can provide anyone with maximum protection and is particularly beneficial for those with limited income to eliminate more losses in the long run.
10. Opting out of your health insurance will only affect yourself. When one person decides not to use a health insurance offered by the company, it will send a signal to the employer that their employees might not need this kind of insurance. When the employer takes health insurance off the employee benefits, then many others will suffer from it.
If you need any specific information about any particular aspects of an insurance policy you can visit the Free Online Insurance website.