Popular Insurance Myths (Busted)
Myth 1: “Insurance is only for old or sick people.”
Reality: Anyone with dependents, assets, or income needs insurance. Accidents and illness can happen to anyone—protection should begin early.
Myth 2: “My employer’s insurance is enough.”
Reality: Many company covers are minimal, won’t transfer if you leave your job, and might not cover your family fully. It’s important to have personal policies too.
Myth 3: “Life insurance is an investment.”
Reality: Insurance is first and foremost for protection. Investment-linked plans often offer lower returns than dedicated investment products.
Myth 4: “Cheapest policy is best.”
Reality: Cheap insurance can mean insufficient cover or strict exclusions. Adequate, well-tailored cover is more important than low price alone.
Myth 5: “All illnesses are covered from day one.”
Reality: Most policies have waiting periods for pre-existing diseases and certain treatments. Always check before buying.
Common Insurance Mistakes (And How to Avoid Them)
Mistake 1: Underinsuring or Overinsuring
Too little cover leaves you exposed; too much wastes money. Always calculate needs carefully (life: 10–20x annual income; health: match city hospital costs).
Mistake 2: Ignoring Policy Exclusions
Buying without reading fine print can mean denied claims later. Review what’s covered and what’s not.
Mistake 3: Not Updating Your Cover
Major life changes (marriage, kids, home purchase) require a coverage review.
Mistake 4: Missing Premium Payments
Lapsed policies mean no protection—set automatic payments or reminders.
Mistake 5: Delaying Claim Notification
Late claim filing can lead to rejection. Always notify insurers promptly.
Mistake 6: Not Disclosing Conditions/History
Hiding medical facts, smoker status, or other truths may void your policy—always be honest in proposals.
Pro Tips
Review policies every year—especially after big life or financial changes.
Mix employer and personal insurance for comprehensive protection.
When in doubt, consult a licensed advisor—not just sales agents.
Maintain clear records and inform your family about your policies and claims process.
Conclusion
Knowledge is your best insurance! Bust myths and avoid common mistakes to get policies that truly protect you. Proper planning means fewer surprises, lower costs, and real peace of mind.