When looking to buy your next insurance policy, you need to weed out the myths from the truth about insurance. There are so many out there, that it can be hard to decide if what you’re learning is true or not. Today we will be debunking some common insurance myths!
In one of our most recent blogs, we talked about some of the most unique and strange insurance policies out there. In this blog, we are going to be talking about and debunking some of the most common myths in insurance. This will include myths in life insurance, health insurance, and car insurance. Remember what they say; not everything you hear is true. The insurance world is no exception to this rule. When choosing a new insurance company or buying a policy for the first time, be aware of the facts and fictions. It’ll take some time, and you’ll want to put in the research about what’s very true and very false about what you’re looking to buy. Remember, taking advice from a friend or family member is great, but take it all with a grain of salt. As much time as they might have spent researching and buying insurance themselves, they aren’t the official pros. Even when it comes to the pros, a second or third opinion is always recommended! We hope these myths and debunking them is the kind of information you’re looking for today!
Myth: I don’t need life insurance because I’m married with no children or I’m single.
Truth: Life insurance will always be important, no matter your relationship status. Picking life insurance is not an easy topic because it’s never fun to think of or discuss that “what if” scenario of what would happen if you would pass away unexpectedly. If you do pass away, your financial expenses, debts, and burial coasts are still placed on your family members. Having an insurance plan can help eliminate any burden and can protect the family you’ve left behind.
Myth: I have plenty of money saved, so I don’t need a life insurance plan.
Truth: Saving money is an incredible life long process that needs to be apart of your financial journey. Having plenty saved up is great, but will it last through your retirement? Do you have enough for emergencies plus what will need to be covered after you’re gone? According to the National Funeral Association, the average funeral cost is $7300 and can cost much more. If your savings don’t last up to the end of your life, with plenty of costs to follow, your family will be left with the bill. It can also help your children or heirs pay off any expenses they might inherit from you, left behind debt, and can even leave them with an inheritance. You can rest easy knowing that they’re taken care of for a little while after you’re gone.
Myth: Your insurance will cover anything that happens to your car! Including if it’s stolen, vandalized, damaged by natural disasters, etc.
Truth: While insurance for your car can cover all of these situations, not everything will be covered under a standard policy. You need to make sure that you option up to get comprehensive and collision coverage on top of your standard plan to be covered from everything. It might be a little more expensive to add this to a standard plan. But, it will be cheaper when a situation does arise and you are covered for anything that could happen. Thinking you’re protected and finding out you’re not after the fact can be very painful and expensive.
Myth: The color of your car will set the price of your auto insurance.
Truth: There is so much more that goes into the pricing of your policy! The color doesn’t factor into what you’ll be paying at all. A company will be looking at the driving history of the policyholder, the age of the driver, and the condition of the car. They consider factors like the likelihood of it getting stolen, how much the car is worth, how much it takes to repair it, its age, its engine size, and the make and model of your car.
Myth: I’m in great shape, I’m healthy, and I’m young. I don’t need health insurance!
Truth: You might seem healthy, but your body could have other plans. No matter how good you are to yourself or how healthy you are, no one can avoid accidents, sickness, or a diagnosis out of the blue. Even though it might seem pointless to be paying for health insurance when you are very healthy, it won’t seem that way when an accident or sickness appears. Having insurance in these situations can save you thousands of dollars at a time!
Myth: Every plan offers the same coverage, so it doesn’t matter what I pick!
Truth: Every insurance plan and its pricing is very unique. While many are similar, you need to understand exactly what your needs are and to make sure the coverage you pick follows suit. It can take time to research and compare prices, but all good things take time. You owe it to yourself and to your health to make sure you know exactly what you’re buying and what will be covered and when!
Myths can be an easy trap to fall into, especially if they save you time and money. When choosing your policies, base your decision on what your needs are and the realities of why insurance is so necessary. Don’t forget friends! Never hesitate to contact us with any questions or concerns. We are here to help you develop excellent software for your insurance company. Continue to stay safe out there everyone. We will see you next time.