Insurance Myths: What You Need To Know

Myths About Life Insurance That Everyone Needs to Know

Whether you are looking for life insurance policies for yourself or for your loved ones, it is vital to know all the important information about insurance policies. The reason is that there are many myths about insurance.

Here are some common myths about insurance policies that you should know.

Myth 1: Insurance Doesn’t Cover Medical Expenses

The truth is that medical expenses are included in a policy. But, some life insurance companies may cover only a portion of medical expenses. So, you should ask your agent about what exactly is covered by your policy.

Myth 2: Your Income Affects The Policy Premium

You need to pay the premium according to your income. But, your income does not really affect the policy price. In fact, the premium depends on your age, the amount of coverage you want and your medical history.

Myth 3: You Can Cancel the Policy After Losing a Job

If you lose a job, you won’t be able to cancel the policy as it is a binding contract between you and the insurer. So, if you decide to leave your current job, you can take a gap year to save money.

Myth 4: Your Family Members Are Protected If You Die

Unfortunately, most people believe that the family members of the insured person will be provided a lump sum of money. The reality is that the relatives are not protected by the insurance company. The only person who gets the money is the beneficiary of the policy.

Myth 5: You Don’t Need to Read the Fine Print

Insurance contracts are very complex and there are a lot of terms that you will never understand. You may miss a clause that could invalidate the contract. Therefore, you should have a lawyer read the policy before paying the premium.

Myth 6: You Should Consider the Expense of the Policy When Buying It

There are various factors that influence the price of insurance. These include: your age, occupation, the type of coverage and your health status. The premiums may increase as you get older or as you develop certain medical conditions.

Conclusion:

These are some myths about life insurance that you need to know. They may sound funny, but in reality they can be very harmful for you. It is better to ask an expert if you want to get some useful information about insurance.