Introduction

Insurance is considered a vital component of financial planning since it protects you when the unexpected occurs. Insurance usually acts as a safety net for individuals as well as businesses by transferring the risk away from them (or at least partially) to an insurance company. Insurance exists to help minimize your risks as it pertains to health, accident, property, etc. Most consumers choose to avoid insurance, choose poorly, or are confused by all the myths and misunderstandings that are a part of the conversation around insurance.In this article, we are going to look at some of the most common myths about insurance and explain why they are or may not be true. This may leave consumers more informed to make insurance policy decisions, save money, get better coverage, etc.

OutlineIntroduction

Defining insurance and its importanceThe influence of insurance myth Objective of articleMyth #1: Insurance is too expensiveThe misunderstanding of insurance premiums What determines your premiums Insurance premium discount options Myth #2: If I’m Young or Healthy I do not need insuranceThe assumption that insurance is only for older or sick The value of obtaining insurance at a younger ageAdvantages to obtaining insurance while young and healthy Myth #3: My Employer provides enough Insurance The limits of insurance provided by an employer Why additional insurance is necessaryThe importance of understanding an employer’s insurance planMyth #4: Car Insurance covers AllThe misunderstanding of car insurance coverageThe types of car insurance: liability, collision and comprehensive Additional coverage options in car insurance Myth #5: Life Insurance is too expensive to carry for everyone The myth that life insurance is too expensive for most peopleLife insurance options that many families can afford How life insurance is beneficial to your family or any dependents in the event of your death. Myth # 6: Health Insurance covers all medical bills The misunderstanding of health insurance Out of pocket costs and co-pays Your choice of a health insurance plan is about your needs.Myth #7: The More Expensive My Insurance, the Better the CoverageThere is a connection between cost and coverage.Insurance premiums do not always reflect coverage quality.What you should be looking for in a policy besides price.Myth #8: My Insurance Will Cover All My Damages After an Accident.Under what circumstances insurance claims can be filed.What it means to file a claim, and how that might look different when it comes to coverage limits.How insurance companies assess claims/damages and payouts.Myth #9: Insurance Companies Are Always Out to Deny Claims.The idea that there’s always a war/power struggle when it comes to insurance.What role insurance companies have in obtaining approval to a claim.How to file a claim properly so that it may not be denied.Myth #10: Homeowners Insurance Covers All Types of Damage.What standard homeowners insurance usually covers and does not cover.Natural disasters and exclusions.How to add coverage in certain instances for the homeowner.Myth #11: My Credit Score Does Not Make a Difference In Insurance Premiums.What credit has to do with insurance premiums. How insurance companies use credit usage/scores. How to improve a credit score so that one could possibly get better rates. Conclusion

Introduction

Insurance is often regarded as a necessary but confusing expenditure, which leaves many people unsure if they are receiving adequate value. In a time when every dollar counts, people are constantly searching for the best prices on goods and services and this is even true when it comes to insurance. Due to this, insurance myths have become widespread. Some of these myths may even impact consumers’ decisions and create coverage gaps or financial disruption when faced with any unexpected event.Insurance myths can create confusion and prevent individuals from knowing “the value of various policies and insurance”. The goal of this article is to dispel the myths and inform the reader with the facts they need to make the most appropriate insurance decisions to be properly protected for future uncertainties.2. Myth #1: Insurance is Too ExpensiveA common myth about insurance is that it is too expensive to obtain. Many people think they cannot afford to properly cover themselves, or they postpone purchasing insurance because they do not have enough in their budget to pay the insurance. Misconception that Premiums are HighWhile some insurance (especially health insurance and life insurance) can have large premiums; the total cost is based on many different factors; which can include your age, where you live, your occupation and lifestyle, and the type of coverage.

Myth #3: The Insurance Said to be Sufficient by Their EmployerMany individuals believe the health and life insurance provided by their employer is sufficient for their situation. While insurance provided by an employer can be a great benefit, it is not always enough.Limitations of Insurance Provided by EmployersInsurance provided by employers is generally limited in coverage, generally considered to have a higher deductible, and generally does not cover dependent family members. Furthermore, when an individual changes jobs or leaves their employer, they might lose access to that insurance.When Supplemental Insurance May be NeededSupplemental insurance policies, including life insurance, dental insurance, or vision insurance, can supplement coverage lacking in the employer policy. Additionally, depending on their personal needs or family situation, an individual may want to seek out individual policies to assist in coverage.The Need to Understand Their Employer’s Insurance PolicyBefore assuming their employer’s health insurance is enough, one should take a step back and understand what is included in the benefits plan and fully understand any specifics of their policy, including deductibles, co-pays, coverage limits, etc. Understanding their employer’s health insurance may inform whether the individual needs coverage beyond what is provided to them by an employer. Many times, employers will designate a period of time for individuals to alter or enhance their insurance policy coverage which may be a time when they can supplement the insurance needed for their needs.

ConclusionInsurance

can be a complicated and, at times, intimidating topic but understanding the facts behind common myths can help you with your own informed decision-making. Whether it’s about the cost of coverage, the need for insurance at a young age, or if your policies are enough, the facts are often different than what we believe.Learning the facts about your policies, shopping around for the best rates, and reviewing your insurance coverage will all help ensure you are properly insured and not losing money on excess coverage. Remember that insurance is an investment in your financial future, and debunking myths is a great first step towards a better decision moving forward.