Top Insurance Myths

Tuesday, October 29, 2013

Top Insurance MythsThe insurance industry, its policies and applications can be full of myths. These myths may be occasioned by misunderstanding the profession or expecting too much from the same. Some top insurance myths are listed below:

 

  • Life insurance is applicable to all people. This may not necessarily be true.   Life insurance has been designed for those who have dependants. The policy is designed in such a way that in an event that one dies, his or her dependents can be compensated. In this way, those who do not have any dependants may not necessarily need any life insurance. So, some people may opt out of life insurance.

  • Make sure you understand the stipulations of your insurance policy.  For example, you may not be covered in your automobile insurance if that car is not being used for what it’s intention is in the insurance policy.  So although you have automobile insurance you may not be covered fully.  In your signed policy there will be indicated stipulations.   In auto insurance for example, it asked whether the vehicle will used for business or personal means.  If you are involved in an accident and you are insured for personal use, and the accident occurs when traveling for business, you may not be covered.  So make sure that you read the fine print in your policy! 

  • Umbrella insurance should only be used by the wealthy. Umbrella insurance is applicable to anyone that may not feel they have enough coverage in their current policies.

  • As long as you are paying premiums, insurance will cover you for any and all situations.   Make sure that you understand and have read your policy so you know exactly what you are protected from and how your policy works.

  • Buying minimum insurance premiums, will cover you in the case you will need coverage.  Minimal premiums generally mean minimal coverage.  Not all policies are the same, so make sure that you look into it before you sign!