Myths About All Kinds Of Insurance

There are a lot of ideas that people have about insurance that is not really true. Some are widely believed and have somehow come to look like the truth; but sadly they are not.

1.There is no need to buy disability insurance; social security would take care of me if I become disabled. There is no way social security benefits would be commensurate to the income you've lost. Most times also, you have to wait until your disability is considered long term before your social security benefits kicks in. the best bet for you is to have your own disability insurance.

2.A family member uses the car for some business runs but is not really self employed, so my auto insurance will cover any accidents. Be aware of the fact that if your car is used for any thing other than personal use, your policy would not cover for accidents during those other activities. Make sure you understand the terms of your agreement so that you will not receive a rude shock at the end of the day.

3.Umbrella coverage is for the rich. Umbrella coverage is designed to give you extra coverage beyond the limit of your homeowner's, auto and watercraft insurance. This can help you add between 1 to 5million to your liability protection depending on the policy and the company used. With the high occurrence of lawsuits, this is a necessity.

4.Government would pick up the bills if I have to stay in a Nursing Home at retirement. Most people believe that Medicaid and Medicare would take care of all their bills in a nursing home. This is not true; even if you qualify for Medicare or Medicaid, the best they can do is pay half the bill. In order not to be a burden to your family and loved ones at retirement, consider long term care insurance way before you are due for retirement. Your premiums would be lower if you start early.

5.If I don't buy health insurance, it doesn't affect anyone else. This is not the case, you belong to a community, and so whatever you do or don't do affects others. When people get sick and cannot do their jobs, the cost of goods rises. When a lot of people in a company decide that they do not want health insurance, the employer may feel that it is not a need for them; this affects those staff that really needs to have health insurance. When healthy people choose not gto have health insurance in a company, the number of people that would bear the risk would be less and this would drive up the cost.