Common Insurance Myths

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True enough, insurance plans aren’€™t for everyone. Still, many people decide against purchasing one not because of careful considerations, but because of false hearsays. Here are some of the commonly heard insurance myths that you should be aware of.

I am young and healthy and I don’€™t need insurance

Nothing’€™s better than enjoying your youthful days, earning money on your own and being able to buy the things you want and need. However, if it’€™s just that easy to predict when are you going to get sick, disabled, or worse, gone for good, then you could easily know when and if you are going to need insurance someday. Just like a game of Blackjack, you can’€™t possibly tell if your opponent holds a total of 21 in their cards, thus insurance is taken for protection. In life, it also works for the same purpose, which is to protect yourself from the inevitable. Thus, being young and healthy, at least for now, doesn’€™t exempt you from needing insurance someday. Furthermore, if you decide to get one when you’€™re older, there could be a steep price to pay.

I am single and without children so I don’€™t need insurance

One of the basic determining factors if you need insurance is having dependents who would be affected financially if you die or become unable to work due to sickness or disability. However, being single and without children doesn’€™t immediately mean that you don’€™t need insurance. Perhaps, you have aging parents who would continuously need your support, or a certain charity close to your heart. All of them could benefit from your insurance policy.

I already have insurance at work

One of the things to check out at your job is having employer scheme insurance. While it is good to have this extra benefit to cover for some expenses such as medical costs, it might not be sufficient to pay for other bills.

I am a stay- at- home spouse and I don’€™t need insurance

If you have a stay- at- home partner, and you think there’€™s no need for additional insurance for your spouse, think again. Have you computed lately about the cost of childcare, housekeeping, etc? The loss of a homemaker means having to pay for those services usually provided free by your partner, which could cost more in the long run.

Insurance is expensive

It could be, it could be not. However, you shouldn’€™t decide against purchasing one just because you think it is expensive. By carefully choosing the right coverage and the right policy, and with proper research of the market, you can actually find a reasonably priced deal to cater for all of your needs.

I have enough in my savings account

Granted, that you have a decent amount in your savings, it’€™s still hard to tell if and when will something bad can happen to you. Having a backup insurance plan and leaving your savings intact can best prepare you for the worst case scenario, leaving you enough funds to live by in difficult times.

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