Insurance helps people in safeguarding themselves against financial loss because of unforeseen events. There are plenty of benefits of insurance but still there are several myths and misconceptions surrounding insurance policies that can lead to confusion. To help you all to get through all this confusion, let’s have a look on common myths and the actual reality behind it.
1.Myth: Insurance provided by company is enough
Reality: Insurance provided by your company or the place you are working in is valid till you are in service. Moreover, some companies do not cover insurance for your family, and it is not enough for your family’s future. Therefore, since self-insurance will benefit you during difficult times, it is preferable to obtain insurance on your own.
2. Myth: Insurance is a Waste of Money
Reality: Financial protection is provided by the insurance against unexpected events such as accidents, illnesses, natural disasters and thefts. This allows for mitigation of financial impacts through covering repair costs, medical expenses and other losses. Taking insurance contributes to peace of mind and avoidance of huge financial burdens in times of crises.
3. Myth: Insurance Companies Never Pay Claims
Reality: Despite there being instances where claims are denied, the insurance companies do everything within their power to pay valid claims as fast as possible. Therefore, it is important for you to understand your policy terms; use precise information before making a claim; document loss adequately so that it can pass smoothly through the whole process.
4. Myth: Young and Healthy Individuals Don’t Need Health Insurance
Reality: Anybody could fall prey to accidents or diseases regardless of age or health status. Health insurance provides basic covers such as hospital bills, doctor consultations among others thereby allowing people easy access to treatment without facing heavy financial strains.
5. Myth: Online Insurance Purchase is Risky
Reality: Buying an insurance online has become easier and safer with many policy options available at cheaper prices. Trustworthy companies like Click4bima offer straightforward websites with transparent policy comparisons which makes it easier for the customers.
6. Myth: Insurance is Only Necessary for High-Value Assets
Reality: All types of assets, including homes, vehicles, and personal belongings require insurance coverage. It helps individuals and families attain financial security as well as peace of mind by protecting them against theft, damage and liabilities associated with their assets.
7. Myth: Only Older People Need Life Insurance
Reality: Anyone with dependents or financial commitments must have life insurance. This is a way of providing money for beneficiaries in case the insured dies; it can cater for funeral expenses, debts and continued living costs after the death of main breadwinner.
8. Myth: Insurance Premiums are Fixed and Cannot be Negotiated
Reality: Age, health condition, risk assessment and coverage options among others determine insurance premiums. By going for high deductibles, combining policies or having good claims history one can negotiate premiums more often than not.
9. Myth: Term Life Insurance is an Unjustified Expense
Reality: Term life insurance provides affordable coverage within specified times like ten (10) years, twenty (20) years or thirty (30) years. It also provides temporary financial safeguard during this period making it quite important especially where dependants depend on the breadwinner’s earnings .
10. The myth: All types of commitments are taken care of by insurance.
The fact is: consumer insurances have some exceptions and limitations. It is hence important to carefully read policy documents in order to understand risk covers, exclusion provisions, deductibles, as well as claim procedures. In order to have a better cover and as such need optional add ons such like flood covers or riders.
Conclusion:
Knowing what lies behind these popular misconceptions surrounding insurance is vital in helping you decide well on your insurance needs be they regarding health insurance, life insurance, automobile or property insurances. By destroying such myths, people become more knowledgeable about insurance policies therefore making choices easily that are also better financially. Making yourself knowledgeable and consulting reputable companies such as Click4bima will enable you go for an appropriate policy which would protect you from bankruptcy.
