Many people today see insurance as a waste of money because they do not think they need it. Those who have it are often in the same boat but feel cheated because they’re paying for something they may not be using. However, insurance is not there for you to benefit from each and every day and based solely on the money you have paid. Insurance is that extra peace of mind; the comfortable feeling of knowing you are prepared for and protected in the event of life’s inevitable what-ifs.
A lot of people also believe everything they hear instead of finding out on their own. They listen to the media, their friends and family, advertising propaganda and even the pitch of an insurance salesman trying to make an extra buck. The insurance sales man and the other forms of influence are not wrong in what they do. They have their own opinions and some do have a job to do. However, the decision of what insurance plan to buy lies squarely on the shoulders of the consumer, who should research the information, read the fine print and decide for themselves, minus the influence of other sources. Those other sources are not you, do not live and walk in your shoes and do not know your needs. Only you can know those things and make the decision for yourself.
With that in mind, there are many myths floating around out there about insurance. These can be costly mistakes for the uniformed consumer. Here is one big myth and the truth behind it to help you make a better decision when it comes to purchasing your insurance plan. Whatever the insurance type, this myth and reality will apply.
Myth #1: Bare Minimum Coverage is Cheaper, so it’s Better.
Not exactly. Saving money is great, however, bare minimum coverage may leave you hanging in an unfortunate event, and you will be left to at the costs of whatever your insurance will not cover. This doesn’t mean you need to buy the maximum coverage or coverage for things you certainly won’t be facing. After all, one would not buy hurricane insurance while living in the Midwest. However, you do want to plan for life’s little (and big) what-ifs, so you need to take that into consideration and purchase a plan that covers at least the majority of what you may someday need. Even if you do not use it, it is not a waste of money when compared to what you could wind up paying out of your own pocket without coverage.
