Article originally published on TrustedChoice.com
Insurance is something that nearly everyone purchases. Whether you own a car or carry health insurance through your company, it’s likely you’ve interacted with an underwriting agency at one time or another. Insurance is sometimes misunderstood, and it can be a complicated topic.
It is important to be educated about the different types of insurance out there, but sometimes it can be difficult to distinguish the truth from myths.
MYTH #1 – “I don’t have that much stuff, so I don’t need renter’s insurance.” A lot of people think that they don’t have enough stuff to make buying renters insurance worth it. Go around your apartment or rental home and take stock of all your items, including furniture, appliances, electronics, clothing, towels, and more. After you do this, you’ll probably be surprised at just how much you could lose in the event of a natural disaster, fire, or theft. Even if you don’t own very expensive items, you can get back on your feet faster when you have renters insurance to compensate for your losses.
MYTH #2 – “Only rich people need umbrella insurance.” Many people believe that umbrella insurance is only for the wealthy, as it gives significant coverage (usually over $1 million) for liability lawsuits. The fact is, anyone can face a liability lawsuit, but not everyone has enough insurance to pay for one. If you’re legally responsible for someone’s losses, injuries or death, there’s a chance you could be sued for more money than a standard insurance policy will cover.
MYTH #3 – “I’m a homemaker, so life insurance won’t benefit my family.” Life insurance is a dynamic product that can help support the entire family, not just those who earn money. A life insurance policy can help cover the costs from a lost salary, childcare, food, transportation, housekeeping, mortgage payments and more. When you buy life insurance, you can be sure that your family continues on with a similar standard of living.
MYTH #4 – “I’m young and healthy, I don’t need health insurance.” Young people and without serious health problems may not prioritize health insurance coverage. While you may not need many aspects of health insurance coverage, like prescription coverage or maternity care, you should still consider a basic health insurance plan. This will protect you from outrageous costs if you happen to have an accident or get diagnosed with a serious illness. Read the rest of the Top Insurance Myths in our next newsletter.
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