10 insurance myths

Myth #1: Hey, You're Paying the Premiums...the questions you have.
Insurance Should be Bought and Used for EveryMyth#7: I Don't Need Disability Insurance... If I
Accident and Disaster.Become Disabled Social Security Will Take Care of
Insurance is designed to protect one fromMe.
catastrophic disasters. An insurance rule of thumb:Don't count on Social Security to take care of all
If you can pay for the loss or damage without ayour needs if you become disabled
financial hardship then pay it, otherwise expectIf you are able to get Social Security for your
your insurance premium to eventually show andisability (not all get approved to receive disability
increase. Also, buying every type of insurancebenefits so don't assume you will) then you will still
just isn't necessary. Sometimes the risk is worthhave to wait months before you receive benefits
taking rather than paying a premium. Learn moreand your disability needs to be long-term to
at Don't Buy Insurance You Don't Needqualify. And even if you qualify for benefits, will it
Myth #2: If I am Alive, I Must Need Lifematch your current salary? Probably not. Find out
Insurance!more why disability insurance is important at
Life insurance is designed to take care of one'sConsidering Disability Income Insurance.
dependants after the caregiver's death. If youMyth #8: If I Need to Stay in a Nursing Home
have no dependants, then you probably don'tWhen I am Older, The Government Will Pick Up
need life insurance.the Bill.
This includes children and retired persons... usuallyAgain, don't count on Medicare or Medicare
they don't have people that depend on theirSupplemental Insurance to pick up the bill. If you
income so life insurance for these groups can, incan qualify, Medicaid may pay up to half of the
rare instances, be beneficial but is usuallycost. Choosing long term care insurance can help
unnecessary.you pay for the costs of a nursing facility or
Myth #3: I'm the Breadwinner in the Home, Sohome care if the need arises. Also, do you really
Only I Need Life Insurance.want your family to have to pick up the bill if you
Have you seen the cost of childcare lately? Addacquire a long term illness or disability? Long Term
that along with housekeeping, food preparation,Care Insurance is a great option and if started
home accountant, and school transportation. Fromearly in life the premiums can be very reasonable.
that list alone one can see how much a spouseFind out more at Who Should Consider Long
really contributes to the household budget. It isTerm Care Insurance?
estimated a non-working spouse contributes atMyth #9: Umbrella Insurance Coverage is Just for
least, but usually more, the equivalent of a fullRich People.
time job. For this reason it is important to buy lifeUmbrella insurance is not just for the wealthy.
insurance for everyone in the household if theWith the common occurrence of lawsuits,
absence of their income would cause a financialumbrella insurance is a must for every home,
hardship.auto, and watercraft owner. Umbrella insurance is
Myth #4: Whole and Universal Life are the Bestdesigned to give one added liability protection
Life Insurance Choices Since I Can Get My Moneyabove and beyond the limits on homeowners,
Back.auto, and watercraft personal insurance policies.
Term life insurance is probably the best choice forWith an umbrella policy, depending on the
most. Term life is set for a specific term, likeinsurance company, one can add an additional 1-5
10-30 years, with a much lower premium thanmillion in liability protection. Learn more about
whole and universal life. Your best bet? Buy termumbrella insurance at Why Every Policyholder
life and invest the premium difference in aNeeds Umbrella Insurance
retirement account. Lean more about Term,Myth #10: People Who Decide not to Purchase
Universal, and Whole Life at Life Insurance PolicyHealth Insurance Don't Affect Others.
Basics.People who choose not to purchase health
Myth #5: Flood Insurance is Only for People Whoinsurance eventually affect the lives of every
Live in a High Risk Area.American. There are many reasons why some
Everyone who lives in a National Flood InsuranceAmericans are uninsured. Regardless of the
Program area is eligible and can buy floodreasons, having so many uninsured individuals
insurance. These areas are not always prone todrives up the cost of goods when people get sick
floods so even if you think your area is low riskand cannot do their job. In addition, when many
you may be eligible. Check with your insurancepeople in a company choose not to purchase
agent to learn more or find additional informationhealth insurance, it sends a message to the
at Why didn't my policy pay for damage causedemployer that health insurance may not be an
by a flood?important benefit which in-turn could cost other
Myth #6: My Son Uses the Car for Delivering theworkers a loss of their health insurance benefit.
Newspaper and His Pizza Delivery Job. He's NotAlso, when healthy people choose not to be a
Self-Employed So Our Auto Insurance Will Coverpart of their company's health insurance pool, it
Any Accidents.raises the costs for everyone else because the
If your vehicle is used for anything but personalrisk is spread through less people. And, when
use, then you will probably need to extend yourpeople make such low wages that they cannot
personal auto policy to cover business use ofafford health insurance, the number of people
your vehicle. Don't think just because you wereeligible for Medicaid rises (which is paid by your
unaware of your coverages this will get yourtax dollars!). For these reasons, many have
accident paid for--your insurance policy is aencouraged the government to switch to a
contract that you agreed to adhere to. If youUniversal Health Care System where the
don't understand all the coverages in yourgovernment would help manage health care. Learn
contract you need to contact your agent aboutmore at What is Universal Healthcare?