8 Insurance Policy Myths & Miscommunications Debunked

By Lizzy Azubuike

Insurance policy is often misunderstood, with many myths preventing people from securing the coverage they truly need with it.

Some believe it’s only for the wealthy, while others assume young and healthy individuals don’t need it. Many also think insurance policies cover everything without limitations.

These misconceptions can leave people financially vulnerable in times of need. Understanding the truth about insurance policies helps individuals and businesses make informed decisions, ensuring they are adequately protected against life’s uncertainties.

Below are some MYTHS and the TRUTHS

1. “Myth: “Insurance is only for the wealthy.”
Truth: Insurance is for everyone. It provides financial protection against unexpected events, helping individuals and families avoid financial hardship.

READ ALSO: Rising Costs Of Health Insurance: 6 Guides Which Policy To Choose

2. Myth “Young and healthy people don’t need insurance.”
Truth: Accidents and illnesses can happen to anyone, regardless of age or health status. Getting insured early often means lower premiums and better coverage.

3. Myth: “Life insurance is only for those with dependents.”
Truth: Even if you don’t have dependents, life insurance can cover debts, funeral expenses, and leave a legacy for loved ones or charity.

4. “Myth: Car insurance only covers accidents.”
Truth: Depending on the policy, car insurance can cover theft, fire, natural disasters, and even third-party liabilities.

5. Myth: “Home insurance is unnecessary if you’re renting.”
Truth: While landlords insure the building, renters insurance protects your personal belongings against theft, fire, or other damages.

6. Myth: “Health insurance covers everything.”
Truth: Not all medical expenses are covered. It’s important to understand exclusions, co-pays, and deductibles in your policy.

READ ALSO: Police Begins Full Enforcement of 3rd Party Insurance Policy

7. Myth: “The cheapest insurance policy is the best.”
Truth: Low-cost policies may offer minimal coverage, leading to higher out-of-pocket costs when you actually need to make a claim.

8. Myth: “Once you buy insurance, you’re covered for everything.”
Truth: Policies have limitations and exclusions. Always read the fine print and ask questions before purchasing.

I hope this post has been able to answer some questions you had about insurance and addressing the misconceptions.
Please do contact me for all your insurance needs.