10 Common Myths About Insurance Debunked

Are you thinking insurance is not for you because of some myth floating in the air? Then check out this article, it will blow the myths away and help you to make a decision.

Life is full of surprises and uncertainty. No matter how much planning you do or how good you are at managing your wealth and life, there is no assurance that everything will go by your plan. On the contrary, most of us experience life in a different way than we expected. Uncertainty and risk are involved in every aspect of life like health, property, finance, etc. 

Why Do I Need Insurance

In this chaos of life, insurance could be a savior if some sudden unfortunate incident hits you or your loved ones. It can not compensate your intangible losses but it can help you by minimizing your financial losses. If you want to avoid the risk of sudden incidents that may empty your savings or peace of mind then buying it should be your priority. Based on the risk factor there are several types of insurance and other policies available in the market. Such as life, health, insurance, housing, and other general insurance.

Debunking The Myths Around Insurance

Despite knowing the importance of buying insurance, many of you avoid it due to some misconceptions and myths. Let us list and debunk them here to provide you with clarity about insurance.

• Young People Do Not Need Insurance

Do you believe that you do not need health or any kind of insurance as you are healthy, fit, and have a long life ahead? Then you might be risking your savings and the future of your family. Sudden illness or accident of any of your family members including you, may require hospitalization and that may dry your pockets. If you buy health insurance, your expenses will be taken care of by the insurance company.

On the other hand, buying life insurance will help your family if any sudden death or disability occurs to you. On the contrary, if you start early your insurance premium will be less.

• Employer Insurance is Enough

Some of you might think that the health and life insurance you have as a benefit from your employer is enough to cover any risk. But a personal insurance policy will act as an extra protection against any health, accidental, or life risk. Imagine if a family member’s medical bill is more than the employer’s insurance cover then your policy will be a savior.

• Insurance is Too Expensive

Insurance is never expensive because it protects you from more costly damages. If you do not earn enough to pay a big premium then opt for a lesser premium and divide it into quarterly or monthly basis. However, it is more important to get health and life insurance if you earn less to handle sudden emergencies effectively without exhausting your savings.

• Term Insurance is A Waste of Money

A popular thought in the market is that term insurance is a waste of money because you will not get any benefit once the term ends and if by God’s grace, nothing bad happened to you. But imagine the consequences of the death of the earning member of a family without any insurance. The family will face problems in every aspect of life. Compared to other insurance plans, term insurance premiums are cheaper and give more coverage. So even if you have a little budget for insurance, term insurance should be your choice.

• Health Insurance is Required At Old Age

Old age people are more prone to suffer from diseases but young people are also not spared. Many studies show that due to our changed hectic lifestyle, young people are also suffering from diseases like cardiac arrest, cancer, fibroids, tumors, and the list is huge. Apart from these serious illnesses, a sudden flu can cause hospitalization with a costly treatment. That is why it is important to have health insurance at a young age. Early-age joining will also get you some discounts on premiums. 

• Buying Insurance is Complicated

Thanks to the technical evolution that made buying anything extremely easy, including insurance. There are a lot of platforms to compare available insurance companies and policies. You can check all terms and conditions to choose from a wide range of insurance that matches your budget and needs.

• Life Insurance is Only Beneficial After Death

Many life insurance policies come with long-term wealth creation benefits and they also save on tax. Besides this, you will get mental peace by knowing that your heirs will be taken care of if some unfortunate event takes place. So life insurance is beneficial before and after death.

• Life Insurance is Only For Primary Breadwinner

Think about the contribution of housewives to the family and how they take care of children and entire households. If they will not be there for all these, then you have to hire help and need money for this. So not only breadwinners, but housewives are also worth getting insured.

• Life and Medical Insurance Demands Medical Check-Up

No medical check-up is needed for normal life or health insurance. However, you need to be truthful to the insurance company and state your true health conditions at the time of filing the forms.

• Filing and Settling Insurance Claims is A Hassle

Filing a claim is no more a hassle as there are cashless benefits offered by these companies. Only an intimation to the insurance company about hospitalization is enough. Even if you need to file and settle any claim it does not take much time as technology made all these processes easy and smooth. 

Conclusion

Always remember that life is uncertain and good risk management should include insurance along with savings. Also, keep in mind that early joining will get you the policy at a lesser price with flexibility. These are ten popular myths about insurance that have been debunked now for you. We hope this article was helpful and has cleared your doubts about buying insurance.