Many myths arise about insurance. They come from the false beliefs of consumers and from the over eager selling tactics of the insurance salesman whose just trying to make a buck. If you get caught up in these myths, you might wind up paying out a lot more money than you need to. Here are several myths to watch out for and the truth within revealed.
Myth: Be prepared for every possible event.
No. Frankly, no one can predict ever possibly occurrence in life, therefore, no one can be prepared for everything. When it comes to insurance, if you actually have the cash flow to pay for certain repairs and effects of disaster, by all means, do it. You’ll save some money, as the claims on your insurance will eventually have you paying more in premiums. Also, only buy the coverage you now you absolutely need. For instance, don’t pay for earthquake insurance if you live nowhere near a fault line, in a town with no instances of earthquakes. It does not make sense to pay for coverage you know you will never use.
Myth: I use my car for my job, but am not self-employed. My auto-insurance will take care of things.
Probably not. If you are using your car for business purposes of any kind, you might want to look into extending that policy to cover the business use of your vehicle, just to be on the safe side.
Myth: Why does it matter if people have health insurance or not. It’s a personal choice, and it does not affect me if others don’t have health insurance.
Yes, it is a personal choice, but when those without health insurance run to the ER or doctor and can not pay their bill or more and more begin to rely on state paid medical coverage, whose tax dollars do you think the government is putting to work? It isn’t the government’s own money that is paying these expenses. It’s that of the hard-working, everyday tax-payer, so yes, the issue does affect you.
Myth: Why buy disability insurance? If I need it, Social Security and SSI have it covered.
Try telling that to someone who has fought for their right to benefits for years on end, knowing they need it, but being denied and fought against left and right by the government. These folks are liable to laugh at you and tell you that you have nary a clue as to what you are talking about. Few people win the first and second time around with the SSA. If you want to prepare for this eventuality, get a policy that offers disability insurance. It will at least help smooth the financial edges while you fight the government for your rights to the benefits you deserve.
Hopefully these tips will help you to become a well-informed and savvy insurance consumer. Plenty more insurance myths are out there, and they will be debunked one way or another.
